With Prime Minister Theresa May recently initiating the formal procedure for Britain to leave the EU, and uncertainty surrounding the effects this will have on trade within Europe, it would be easy to understand if manufacturers were anxious about their futures. However, a recent CBI survey has revealed that this is not the case, in fact, the UK manufacturing industry is reporting its highest levels of optimism since 1995. Many manufacturers explain that the recent decrease in the value of the pound has enabled their products to become more competitive in international markets. They also expect their output growth to increase at the fastest rate since February 1995.
Economists predict the depleting value of the pound is predicted to help rebalance the UK economy, shifting from the current services and consumer-focused model to one that favours exports and manufacturing. Consequently, March 2017 has boasted the highest level increase in export orders in three years and output growth has increased at the largest rate since July 2014.
With mixed consequences from the Brexit vote, the outlook for UK manufacturing is mostly positive. Economists warn that any rebalance of the economy towards manufacturing will require the sector to grow in order to balance the offset of services. Currently, manufacturing equates to 10% of UK gross domestic product compared to services which make up around 80%.
Conception Marketing is a marketing agency based in Trafford Park, Manchester and specialises in providing marketing services for SMEs in the manufacturing and engineering industry. Entering its 15th year of business, the team at Conception Marketing can help your SME increase its presence within international markets.
If you would like to take advantage of the recent boost in international exports, our marketing team can devise an international marketing strategy to suit your business, speak to a member of our team here or call on 0161 875 2480.