The Institution and BDO accountants and business advisers carried out a survey that questioned manufacturing companies to ask their opinions on the likely effects of Brexit on their businesses.
More than half (51%) of UK manufacturers see the weaker sterling as a key benefit for their business over the next 12-24 months, with 44% of businesses refocusing on internationalisation in light of the UK’s decision to leave the EU.
Despite over half (51%) of UK manufacturers still believing the UK’s decision to leave the European Union would have a negative impact on the manufacturing sector and their business, they refuse to let it dent their growth ambitions and are not putting investment plans on hold.
Looking ahead, internationalisation is central to the strategy of 44% of the businesses surveyed with over one third (39%) saying they will target markets outside of the EU as a result of the Brexit vote. While not a majority, this is a substantial number given the costs and workload involved for any business in establishing foreign markets.
65% of manufacturers said they are making no plans to reduce their investment intentions – a positive sign for the sector. Of those that are, however, reducing spend on outsourcing (14%) was the most popular choice.
60% of manufacturers are continuing investment in research & development (R&D) and innovation – a key element for growth and competitiveness. 82% of the survey respondents said it is very important for the government to continue R&D and innovation funding in the engineering and manufacturing sector.