Manufacturers upbeat about 2022 prospects says survey

Manufacturers are more positive about achieving growth in 2022, according to a new survey published by PwC and Make UK.

The 2022 Make UK/PwC Senior Executive survey shows that despite the turbulent global economic climate, inflationary pressures and skills challenges, the majority of UK manufacturers have weathered the storm of the last couple of years.

And almost three quarters of companies (73%) now believe conditions for the sector will improve, with a similar number (73%) believing the opportunities for their business outweigh the risks.

Furthermore, almost two thirds (63%) of companies felt the UK to be a competitive location for manufacturing with just 13% believing it to be an uncompetitive place to do business.

However, one year on from leaving the EU, two thirds of companies said that leaving had moderately or significantly hampered their business, with over a half of companies (56%) fearing a further impact this year from customs delays due to import checks and changes in product labelling.

The survey found that manufacturers are prioritising improving productivity, investing in their people, as well as new product development.

The recent COP 26 summit has also accelerated investments in the drive to ‘net zero’.

Cara Haffey, PwC’s UK industrial manufacturing and automotive leader, said: “Despite facing an unprecedented combination of continued Covid pressures, cost inflation and supply chain issues, our manufacturers are responding with an impressive amount of agility and resilience, which will stand them in good stead for the year ahead.

“They have learned valuable lessons about their supply chain vulnerabilities and the resilience needed to respond to unforeseen international or domestic risks and are strengthening their businesses digitally, as well as continuing to focus on talent and skills.

“We are particularly pleased by the breadth of net zero ambitions reflected in the report.

“Across the UK we’re seeing an increasing number of businesses underpin their environmental, social and governance strategies with practical applications to decarbonise their operations and ambitions to build out their green skill base through the recruitment of ‘green’ jobs, a move that has already been flagged as outperforming the UK sector average in our recent Green Jobs Barometer.”