Manufacturers see positive outlook for 2022

The 2022 Make UK/PwC Senior Executive survey shows the scale of uncertainty facing business in the current turbulent global environment, with more than half of companies saying the biggest challenges facing them had changed in the last twelve months. Their optimism is also tempered by escalating inflationary pressures and access to, as well as retaining, talent and key skills which are by far the biggest issues companies are having to address.

In the face of these challenges, however, the majority of manufacturers have weathered the storm of the last couple of years with almost three quarters of companies (73%) now believing conditions for the sector will improve in 2022, with a similar number (73%) believing the opportunities for their business outweigh the risks. To date, the sector appears to have seen little or no disruption from the latest Omicron variant to alter this confidence.

Furthermore, almost two thirds (63%) of companies felt the UK to be a competitive location for manufacturing with just 13% believing it to be an uncompetitive place to do business.

To take advantage of these opportunities manufacturers are prioritising improving productivity, investment in their people as well as new product development, while the recent COP 26 summit appears to have accelerated investments in the drive to ‘net zero’.

However, one year on from leaving the EU, two thirds of companies said that leaving had moderately or significantly hampered their business, with over a half of companies (56%) fearing a further impact this year from customs delays due to import checks and changes in product labelling.

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