UK manufacturers crave clarity as “Spectre of Brexit” looms large

The EEF/AIG Annual Senior Executive Survey - which spoke to 242 companies and was carried out from 1 to 21 November - shows that whilst companies still expect to see growth in domestic and export orders, as well as employment, in the coming year, they are much less confident than they were a year ago.

Almost three quarters of manufacturers (72 per cent) say that Brexit it is their biggest source of uncertainty, with 81 per cent of this group identifying exchange rate volatility as a risk to their business plans.

Furthermore, the impact of a weaker sterling bringing upward pressure on input costs was also seen as a risk by three quarters of companies. This counters a perception that a weaker sterling would be of universal benefit to manufacturing

The survey also shows that delays at customs was a risk for almost four fifths of companies (76 per cent), highlighting the critical need to pursue a Brexit that brings frictionless trade whilst almost half of companies saw a relocation of a major customer away from the UK as a source of risk.