Food and drink sector to create 75,000 jobs by 2021

The food and drink sector forecasted 19% growth over the next five years, according to a survey by Lloyds Bank Commercial Banking, an increase of 3% from last year. It also showed that 37% of firms had increased their job creation plans over the past three months.

The sector appeared to shrug off Brexit blues as companies have raised growth forecasts since the EU referendum, the survey of 100 manufacturers showed. It indicated 44% of the manufacturers had increased their planned investment since the Brexit vote.

Lloyds Bank Commercial Banking head of client propositions Andrew Connors said: “The food and drink industry​ has faced some unprecedented challenges in 2016, notwithstanding the uncertainty surrounding the EU Referendum vote.​

‘Relatively confident and upbeat’​

“However our research shows a relatively confident and upbeat sector which recognises the challenges ahead, and is finding ways to address them.”​

Food and Drink Federation (FDF) director general Ian Wright highlighted the industry’s need to recruit top talent. “Bringing the right people with the right skills into the industry is central to our future success and we must also address the biggest business challenge of our times. ​

“The decision to leave the European Union poses a major test to most food and drink businesses.  Yet we are a resilient and resourceful industry. We are now focused on transforming those very real risks into real opportunities.”​

Despite the Brexit vote, food and drink producers still planned to enter new export markets, as 30% of firms said they planned to focus on overseas growth – the same number as 2015. Western Europe remained the top target for the food and drink sector.

‘Focusing their ambitions overseas’​

Lloyds Bank head of food, beverages and tobacco Elen Paitra said: “Although export intentions have declined slightly for UK food and drink producers, it’s encouraging to see that almost a third of producers plan to achieve growth by focusing their ambitions overseas. ​

It’s important that the sector continues to focus on export growth as this is clearly a key to maximising future opportunities. We’re confident that the sector can continue to grow in the UK and overseas.”​

Meanwhile, the Bank of Scotland recently published a survey that said 14,000 new jobs​ would be created in Scotland’s food and drink sector by 2021.

The survey was carried out in the weeks following the EU referendum. Despite the economic uncertainty following the vote, half of the survey respondents said the referendum result had caused them to raise their business growth estimates.