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Manufacturers are facing the prospect of two years of ‘anaemic growth’, research suggests.
Make UK said the latest forecasts indicate the sector will remain ‘flat’ this year and grow by just half the rate of the economy in 2025.
Its survey of more than 300 companies also found orders are ‘consistent but subdued’, while recruitment and investment plans are fairly strong.
Firms in electronics, aerospace and food and drink are more optimistic, while the South East and Wales are said to be performing substantially better than other regions.
According to Make UK, these are becoming permanent, with the strong performance of manufacturing in the South East yet further evidence that levelling up is ‘failing to address’ regional economic imbalances.
Fhaheen Khan, senior economist at Make UK, said: ‘While manufacturers’ own confidence remains robust, the overall prospects for the sector are weak for the foreseeable future.
‘While there are clearly external factors at play, the UK economy has a fundamental growth problem which a business-as-usual policy process simply will not address.
‘The next government of whatever colour must address this fundamental problem as a matter of national urgency, beginning with a long-term industrial strategy which will really shift the dial on the UK’s economic performance.’
Richard Austin, head of manufacturing at BDO, which helped with the report, added: ‘Manufacturers have continued to show their ability to overcome wave after wave of challenges, but they cannot continue to do this indefinitely without some more long-term support from the government.
‘We have reached a tipping point where the ramifications of regional disparities may permanently affect the manufacturing sector, which could hamper future growth.’
source: PA
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