Survey finds that 34 per cent of manufacturing businesses have seen an increase in profits over the past six months

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25th September 2017 15:44 - Engineering

Survey finds that 34 per cent of manufacturing businesses have seen an increase in profits over the past six monthsSurvey finds that 34 per cent of manufacturing businesses have seen an increase in profits over the past six months: Conducted by SWMAS (part of Exelin Group) and Economic Growth Solutions (EGS), the survey questioned small and medium sized manufacturing enterprises (SMEs) about how they felt their business has been impacted since the Brexit result. 

Out of 332 respondents, just over a third (34 per cent) have seen an increase in profits over the last six months, while 30 per cent said there was no change and 22 per cent said their profits have decreased.

In terms of looking forward to the future, 43 per cent of respondents believe that their businesses will see an increase in profits and 19 per cent believe that their profits will be reduced, following the Brexit negotiations.

The survey also asked manufacturing businesses what they think the Government should prioritise when discussing trade deals in the Brexit negotiations.

 

The respondents listed the following key areas of concerns:  

·      Shipping and free movement of goods;

·      Trade tariffs;

·      Increased cost of materials;

·      Need for speed and clear communication.

 

In short, the respondents believe that the Government should:

·      “Maintain tariff free trade”;

·      “Complete discussions as quickly as possible to create a clear landscape to move forward”;

·      Ensure there is “free movement of goods to keep costs/paperwork to a minimum and clear communication”;

·      Ensure “there is no spikes/troughs in material availability and pricing."

 

However, 50 per cent of respondents said they do not think the Government have taken their businesses into consideration when discussing Brexit trade deals.

CEO of Exelin Group, Simon Howes says: The vast majority [of manufacturers] want to see free trade with the EU maintained to help minimise the cost of imports and keep red tape to a minimum.

“Some manufacturers are already seeing the cost of materials rise due to recent falls in the value of Sterling against the Euro and uncertainty over the future of the UK’s trade arrangements with the EU.”

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