Manufacturers to target export markets

The survey showed that 80% of general manufacturers were planning to invest to support exports this year. A third said export would be their main area of investment for the year.

Needed government support

The manufacturers admitted they needed government support, with 70% saying they would like them to do more especially with regards to cutting red tape.

Their view reflected calls from the Food and Drink Federation (FDF) for the government help to promote the sector.

In its submission for the budget it proposed that there should be more incentives for new exporters. It recommended the creation of an Export Champion Club with mentors given subsidised access to tradeshows.

Potential tax incentives

Also, potential tax incentives should be considered, including tax credits for export staff based overseas.

Lombard boss Ian Isaac said: “The findings of the survey indicate that UK manufacturers are very aware of what they need to do in order to secure ongoing and sustainable growth.

“Within their business plans, investment aimed at securing innovation, improving productivity and establishing strong export markets will continue to be fundamental to securing the future health of the UK economy.”

The EEF, the manufacturers’ organisation, said the UK had a “big productivity challenge”.

EEF chief economist Lee Hopley said: “To get manufacturing growth and productivity on a stronger trajectory we want to see more companies investing in major technological advances, a strong commitment to industrial strategy from government and financial partnership with industry to make investment plans a reality.”

There were 750 UK businesses with a turnover of £2M to £25M that were interviewed, including 100 manufacturing businesses.

Meanwhile, read more about what food manufacturers wanted from the chancellor’s latest budget here and their responses to the budget proposals here.