87 per cent of manufacturers hope to invest in productivity, research finds

April 2016

According to a recent industrial survey, 87 per cent of manufacturers said that they were going to invest in productivity and efficiency. As well as this, approximately 80 said that they were going to invest in facilitating exports within the calendar year. A further 1 in 3 said that exports will be their main investment focus within 2016.

Lombard said that it had seen acknowledgement that there needs to be further government support, with 70 per cent of the manufacturers in the survey saying that they would like to witness further measures to encourage export.

Head of Lombard, Ian Isaac, said of the survey findings: “It’s very encouraging that UK manufacturers are taking an enterprising approach to the importance of investing to secure their place in the competitive global arena.

“The findings of the survey indicate that UK manufacturers are very aware of what they need to do in order to secure ongoing and sustainable growth. Within their business plans, investment aimed at securing innovation, improving productivity and establishing strong export markets will continue to be fundamental to securing the future health of the UK economy.”

Chief Economist for EEF, the Manufacturers’ Organisation, Lee Hopley, said of the market research findings:

“It’s the worst kept secret that the UK has a big productivity challenge. We’ve lost a lot of ground since the financial crisis, but the UK has some real potential strength in its industrial sector, which historically has a good track record in delivering productivity gains. The need for a laser-like focus on driving through efficiency improvements, innovating and investing in new technologies is central to the business model of manufacturers, a fact confirmed in this new research. While we see lots of concrete steps being taken by manufacturers to grow and be competitive in a challenging economic climate, it’s never job done.

“To get manufacturing growth and productivity on a stronger trajectory we want to see more companies investing in major technological advances, a strong commitment to industrial strategy from government and finance providers working in partnership with industry to make investment plans a reality."