Annual MHA Manufacturing and Engineering Report 2017/18

Posted on: September 13th, 2017 by Ian Thomas No Comments

Our Annual MHA Manufacturing & Engineering Report 2017/18 is now available.

Drawing on national and regional insight from over 450 clients and contacts, the findings of our recent survey identifies opportunities and concerns facing UK manufacturing and engineering businesses. Despite uncertainty over Brexit, the majority of businesses have managed to achieve growth over the past 12 months and the sector remains optimistic about the future. The respondents were from a variety of sub-sectors within manufacturing and engineering including: aerospace, automotive, agriculture, biotechnology, chemical, construction, electrical and electronic, food and drink, healthcare, leisure, metals, minerals and materials, oil and gas, pharmaceuticals, renewables and transport, to name but a few.

The report contains a national snapshot from each of our 8 member firms covering England, Wales and Scotland. Along with commentary from sector expert Philippa Oldham CEng MIMechE, Head of Transport and Manufacturing at the Institution of Mechanical Engineers and insight from Sir John O’Reilly, chairman of The ERA Foundation and government adviser on manufacturing and engineering.

Key Findings:

  • 20% of respondents stated that they have lost staff or are at risk of losing staff as a result of the Brexit vote. This average value hides the fact that in London and the South East, it is 35% of respondents that are finding this a problem.
  • 75% of respondents said they have trouble recruiting employees with the relevant skills for their business.
  • Unsurprisingly given the above, 22% of respondents put skills shortages at the top of their agenda. Most businesses want to see government action on expanding skills training for the future work-force at all levels of education, from Secondary Schools to Higher and Further Education (FE) colleges.
  • 94% of respondents felt their cost of production would rise in the coming year.
  • Despite uncertainty surrounding Brexit and anticipated production cost increases, optimism for growth over the next 12 months is up by 9% from last year, with 78% of respondents predicting growth for their business.
  • 92% of respondents see Industry 4.0 as an opportunity.
  • 51% of respondents export, with the Eurozone being the most popular destination (96% of exporting respondents export to the Eurozone).
  • 88% of companies invest some percentage of their turnover in R&D. However, 43% haven’t applied for R&D Tax Credits in the last 12 months.
  • 57% of respondents expect to increase their staff numbers in the next 12 months (an increase of 10% from last year).
  • 59% are planning on taking on apprentices in the next 12 months. However, 80% currently don’t have a strategy in place to access Apprenticeship Levy funding.

Events:

We are hosting two events to launch the report and to discuss the issues raised in more detail. To book your place or to find out more please click on the links below:

Manufacturing and Engineering Survey Report Launch (Cardiff)

Manufacturing and Engineering Survey Report Launch (Swansea)

If you would like to discuss any issues raised in the report in more detail or you would like to speak with a member of our Manufacturing team.

This article originally appeared on the blog of MHA UK 

Leave a Reply

Latest From The Blog


Charities have historically struggled to plug the skills gap in south Wales

The one million trustees, supporting almost 200,000 charities across the UK, help to make the UK the sixth most giving country in the world. With Trustees’ Week (13-17 November 2017) upon us, Sarah Case, director at advisory firm Broomfield & Alexander, offers her experience on what makes a good trustee, the importance of financial skills and how individuals, as well as charities,...

Read more

VAT Alert: Charities will NOT be excluded from Making Tax Digital roll out

Broomfield & Alexander have been working extensively with our clients to move them to accounting software systems. This is in preparation for April 2019 when HMRC will expect VAT registered businesses to be able to pass their VAT return data across directly to HMRC in a digital format.

Liz Maher from Centurion VAT Specialists team – who works with us in supporting...

Read more