Survey Reveals Manufacturers Believe UK Is Gaining Competitiveness as a Global Hub

UK manufacturers perceive the nation as a rising global manufacturing hub, according to a survey. British company leaders display increasing optimism for the industry's future, even as economic difficulties persist.

Ahead of the general election, Make UK and PricewaterhouseCoopers report a more upbeat sentiment among industry executives, although continued economic pressures are noted.

A poll of over 200 manufacturing executives revealed majority sentiment that the UK is more competitive than a year prior, particularly in relation to Germany and France, though there are concerns about lagging behind the US, China, and India.

The manufacturing sector has faced challenges, including the impact of COVID-19, Brexit, and energy price spikes due to the Ukraine conflict. Nonetheless, industry leaders are hopeful for a stable 2024 with lower inflation and possible Bank of England rate cuts.

Make UK's CEO, Stephen Phipson, calls for a sustained industrial strategy to maintain a supportive policy environment. Despite UK manufacturing output declining for 17 months, the decline has been steeper in some EU countries, such as Germany.

UK firms welcomed permanent investment reliefs in Jeremy Hunt's autumn statement, but criticize the government's inconsistent industrial strategy and watered-down net-zero commitments. Additionally, Brexit is reportedly making EU trade more difficult for British businesses.

Separately, Deloitte research indicates increasing optimism among the UK's top finance chiefs, with expectations of business prospects improving despite a GDP contraction and slow growth forecasts for 2024. Low unemployment, solid corporate profitability, and reduced inflation contribute to this positive outlook.