How British Manufacturers Feel About Brexit

Phil Black - PII Editor 05/09/2016

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A post-Brexit study has found that well over half of British manufacturers are positive about the decision to leave the European Union (EU).

The research, conducted by independent energy consultancy Utilitywise, found that 57% of manufacturers felt that the decision to leave presented business opportunities for them.

The study questioned 1,000 businesses from a range of sectors, including leisure, the public sector, retail, hospitality and business services.

The findings coincide with research from the Confederation of British Industry (CBI), the business lobby group, which found that orders for British manufacturing exports climbed to their highest for two years in August 2016.

The weakening of the pound in response to Brexit is being attributed to the surge in orders and optimism amongst Britain’s manufacturers and process engineers, who have long complained the high value of the pound and rising energy costs have put them at a competitive disadvantage.

Tim Hipperson, Consultancy Director at Utilitywise, said:

“With the dust beginning to settle post-referendum Britain’s manufacturers are clearly the sector most positive about business going forward, with the weaker pound and boost in exports likely to be the main reason for their enthusiasm.

“However, it is also likely that manufacturers are hopeful that a government not bound by EU trade and energy regulations is more likely to offer them proactive financial support and assistance, perhaps in the form of subsidies, that will help them compete internationally.

“Whatever the reason, it is good to see that manufacturing, a vital component of the economy, is feeling optimistic about its economic future.”

More generally, the research from Utilitywise found that 54% of Britain’s manufacturers and process engineers were happy with the UK’s decision to leave the EU, as compared to 42% of other sectors who were not, reflecting the feeling that many see business opportunities in Brexit.

Overall, 45% of businesses felt that quitting the EU would be good for business, with 41% disagreeing, demonstrating the extent to which manufacturers feel significantly more positive about Brexit than other sectors of the economy.

Utilitywise was established in 2006 and is now one of the UK’s leading independent consultancies advising clients, including manufacturers, to help them to get the most value from their energy through better procurement and services that allow them to be more energy efficient.