“UK manufacturing is having to contend with a rollercoaster of risks from
the rest of the world” (Lee Hopley, Chief Economist at the EEF) and 2015
has certainly been a case in point.
The General Election in May produced a surprising Conservative majority and with it came the
uncertainly of a referendum on EU membership. Ongoing discussions around the Transatlantic
Trade Partnership (TTIP) famed as the ‘biggest bilateral trade deal in history,’ together with
price rises in China eroding the cost advantage of production, are producing both political and
economic challenges for the sector. UK manufacturers are considering reshoring both their
manufacturing operations and also their supply chains to drive efficiencies, de-risk and drive up
quality, but with widespread currency instability in the Eurozone and ongoing skill shortages the
future doesn’t look straightforward. That said, the sector has a positive outlook - production
is on the increase, access to finance is proving less of a challenge, and new technology is
positioning the UK as a global leader.
