Manufacturers warning on competitiveness of UK

Warning lights are “flashing red” on the UK as a competitive country to manufacture goods and invest, a new report is warning.

A survey of senior executives in manufacturing firms found some optimism that opportunities for their business to succeed this year outweighed risks.

But Make UK said its study also showed that increases in business costs faced by manufacturers were threatening to reach a “tipping point”.

Investment plans could be cancelled or moved overseas, the report warned.

Stephen Phipson, chief executive of Make UK, said: “Manufacturers have demonstrated their resilience over and over again in recent years and those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people, will continue to thrive.

“But, they can only do this if they are operating in the most favourable business environment and, despite the commitment to an industrial strategy, not only is growth anaemic but the warning lights are now flashing red on the UK as a competitive place to manufacture and invest.

“The Government promised significant change – now is the time to deliver it.”

More than half of the 174 companies surveyed said a long term industrial strategy and sector plans will have the biggest impact on growth this year, with almost two thirds saying they will bring forward investment in response.