Factory managers are expecting an upturn in the global market over 2018, with 40 per cent telling the manufacturers’ organisation EEF they are planning for growth, whereas 19 per cent are looking to a downturn in trade.
EEF’s 2018 Executive Survey questioned 281 manufacturing managers in November 2017 about their predictions for growth over 2018, with 62 per cent expecting domestic sales growth, 51 per cent looking for an increase in global exports and 47 per cent anticipating higher orders from Europe.
Managers are also worried about a ‘no-deal’ Brexit, and the increasing potential of disabling cyber-attacks on important digital infrastructure.
The sterling volatility stemming from EU negotiations was also a concern.
Manufacturers hope to hedge their chances by investing in more automation to increase productivity, and better manage their cashflow.
What will the road hold for manufacturers in 2018? EEF senses positivity amongst managers.
Stephen Phipson, EEF’s new Chief Executive, said: “Manufacturers left 2017 in an upbeat mood and are set to outpace the rest of the economy again this year as the growth in global trade continues to gain momentum. That is not to say everything in the 2018 garden is rosy, however, as there are plenty of factors that could puncture this positive picture.
“Chief amongst these is Brexit which has put the investment outlook on a knife edge. As such, it is essential that the Government gets a transition deal as a matter of urgency and sets out with utmost clarity as to what kind of final deal it is looking for.
“In tandem with this it also needs to crack on a pace with its Industrial Strategy. This will be vital in providing manufacturers with the confidence to invest in strategies to improve their productivity and enter new markets.”
EEF has also launched a competition for manufacturers to win two tickets to EEF’s annual national conference on 20th February. Company’s should tweet a picture or a short video which captures their firm’s expectations for 2018 to @EEF_Economists using #EEF2018 by midday 31st January. Open to UK based manufacturers, winner will be contacted by 5th February 2018.