Following the release of the latest UK Manufacturing PMI today (1 June), Guy Hodgkinson, partner at MHA, believes that despite manufacturing output falling for a 4th consecutive month, sector is beginning to see light at the end of the tunnel as government-backed battery factory injects vital confidence back into industry:
“Despite a rocky start to the year and output contracting in May, confidence is returning within UK manufacturing. The announcement in May that Jaguar Land Rover is set to build their new battery plant in Britain supported by several hundred pounds worth of government subsidies has provided much needed reassurance of sector backing from the government and that the UK remains open for business.
“Order books remain strong and inflation appears to be ‘flat lining’, adding to a growing sense of optimism. Despite rising interest rates, there is a willingness from financiers to lend and for manufacturers to invest for the future.
“Innovation continues to remain at the forefront of UK manufacturing. Despite the bitter disappointment of R&D tax deductions decreasing from 130% to 86% in April, green technology is at the forefront of the sector’s innovation drive. With many lenders also pushing for green investments in their funding assessments, we can expect to see sustainability remain a top priority for manufacturers in the short and medium term”
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