Many British firms expect exports will increase in 2022, with growth in the US market and the EU close behind, according to a new survey.
The survey found that British manufacturers are optimistic that business conditions and productivity will improve in 2022, as the country recovers from months of lockdown and trade disruption.
Research by trade body Make UK, revealed that nearly three quarters (73 per cent) of manufacturer respondents think conditions for the sector will get better, with 78 per cent foreseeing some increase in productivity in 2022.
With a more positive outlook, some 40 per cent of companies expect increased exports to the US with the EU close behind.
Around a quarter (26 per cent) are looking for export growth in Asia and one in five to the Middle East (21 per cent).
However, 10 per cent of companies believe the EU will decrease as an export destination for GB manufacturers.
Stephen Phipson, chief executive of Make UK, said: “It’s testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position.”
Make UK forecasts that manufacturing will have grown 6.9 per cent in 2021 and predicts growth of 3.3 per cent this year.
Meanwhile, the Department for International Trade said it expects 2022 to be a “five-star year” for the UK’s trade push – due to ongoing negotiations with India, Mexico, Canada and the Gulf, plus the hoped-for accession to the CPTPP trade bloc.
“We have secured over £760 billion worth of trade deals with 70 countries plus the EU,” a spokesperson said.
“In the year ahead our independent trade strategy will ensure that the UK continues to attract valuable financial investment that boosts our world-class exports and brings prosperity to every part of the UK helping to level up the country.”
With supply chain disruption a challenge for many businesses, more than a third of executives surveyed said they would ‘reshore’ some operations within the next two years, but over half said they did not intend to move production back to the UK.
Manufacturers are also increasing their drive towards ‘net zero’ with nearly half (49 per cent) of companies planning to invest in green technologies or energy efficiency measures in 2022, and a third saying this investment has increased.
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