In total, 70 per cent of the 209 companies surveyed believe that the re-shoring of production back to the UK will accelerate in response to an industrial strategy, with three per cent saying it would make no difference to prospects for reshoring.
These findings are among a range of forecast benefits from such a strategy, including greater investment in UK facilities, increased investment in automation and R&D, plus as a renewed push to increase exports to the EU.
In a statement, Fhaheen Khan, senior economist at Make UK, said: “Manufacturers are ready to unleash the benefits to investment from a long-awaited industrial strategy. It’s clear that this will bring a wide range of benefits and aid companies who are accelerating their moves into greater use of automation and digital technologies, with increased recruitment of higher-level skills.
“Given the US, Europe and China are moving at pace with plans to boost investment in green technologies in particular, the UK needs to match these efforts step for step.”
According to the survey, half of companies would increase investment in existing facilities in the UK, almost a third (30 per cent) would increase automation and increase exports to the EU (29 per cent), while 26 per cent would increase R&D. One per cent of companies said the introduction of an industrial strategy would have no impact on their business.
The survey also shows that UK owned companies have higher levels of investment intensity than foreign owned companies in plant and machinery (8.7 per cent compared to 4.7 per cent per cent) and R&D (5.5 per cent compared to 5 per cent).
Looking ahead to the Autumn Statement, 56 per cent said reducing Corporation Tax would have the biggest impact on investment, followed by the expansion of capital allowances to software (53 per cent) and the extension of full expensing to leased and second-hand machinery (46 per cent). Thirty 30 per cent said that high interest rates were the biggest obstacle to raising finance.
The survey also reveals investment trends of UK manufactures, showing that plant and machinery, along with labour, remains the top priority for companies’ investment in the next twelve months (53 per cent and 52 per cent respectively). Almost two thirds of companies (64 per cent) invest up to 10 per cent of their turnover in plant and machinery with 26 per cent investing between 10 per cent and half of turnover.
Almost three quarters of companies (72 per cent) invest up to 10 per cent of turnover in R&D, while almost one in five (18 per cent) invest between 10 per cent and half.
Mike Thornton, head of manufacturing at RSM UK, said: “It’s clear the impact a comprehensive, forward-looking strategy will have on manufacturers. Rather than lagging behind the UK’s economic recovery, strategic clarity will unlock growth, innovation and even kickstart a re-shoring bonanza - creating jobs, boosting key business and infrastructure investment and improving productivity.”
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