Brexit uncertainty hitting UK manufacturing investment claims report

The EEF/Santander Annual Investment Monitor – which is based on discussions with  328 companies – claims that while demand conditions should be spurring on investment just one third of companies say that Brexit has had no impact on their plans.

A similar proportion are only investing to satisfy current plans and waiting for clarity on any deal before investing further, while at the other end of the spectrum thirteen per cent of companies are holding off investment altogether until there is further clarity on a Brexit deal.

The survey’s findings are backed up by international data, which shows that the UK lags behind its European counterparts in investment in machinery and robots.

The survey’s spotlight on investment in automation shows that industry is making only slow progress on automating manufacturing processes, with industry being held back not just by caution but also by challenges from the cost of technology, uncertainty about returns and the capability to successfully implement change.