A new study suggests that UK manufacturing firms are hoping to dramatically boost productivity ahead of Britain’s departure from the European Union (EU).
This will be achieved through investment in automation and new technology, the latest National Manufacturing Barometer survey from SWMAS suggests.
The news comes shortly after separate figures from the Confederation of British Industry (CBI) revealed that global demand for British goods was on the rise, with export order books among UK manufacturers soaring to their joint-highest in more than 20 years in the three months to November.
Following this, SWMAS’ research has found that British manufacturers are feeling incredibly confident ahead of Brexit.
It found that 47 per cent of firms are expecting to see their profits rise significantly over the next six months – while 41 per cent have already enjoyed a surge in profits over the past six months.
Meanwhile, 43 per cent of the 280 manufacturers quizzed said that they were planning on investing in new equipment, while 40 per cent added that they were hoping to recruit a larger workforce.
In short, manufacturing businesses are bracing themselves for further surge in demand from buyers both overseas and here in the UK, the study suggests.
Simon Howes, CEO of Exelin Group, the company behind SWMAS, said: “This survey demonstrates that the country’s SME manufacturing sector is as robust and adaptable as ever with profits and sales continuing to increase, despite market uncertainties.
“Manufacturers clearly understand the need to improve productivity. However, with much in the news about automation and robotics, it may come as a surprise to policy makers that for many businesses the first priority is to optimise existing resources.”