Following today's Autumn Budget, our CEO, Chris Iveson shares his viewpoint of what the Chancellor's statement could mean to the UK's manufacturers.
“Today’s Budget was a mixed bag for manufacturers. The forecasts around growth and inflation are positive and should encourage manufacturers that have delayed investments to spend again on measures that drive long-term improvements. But the changes to the national living wage and national insurance will add to manufacturers’ cost base when many are vulnerable due to spiralling input costs.”
“These cost increases will make reshoring of manufacturing work, which has been a key source of growth in recent years, harder to justify, and there is a risk it will limit employment opportunities in the sector, particularly for those entering the industry. There will need to be more focus on automation and other technologies to drive productivity and more efficient manufacturing operations."
The Chancellor’s focus on growth, investment and the use of technology to drive improvements and efficiencies is most welcome. Manufacturers in the aerospace, automotive, healthcare and construction supply chains are likely to be feeling optimistic after today’s announcements.
“The multi-year funding commitments for aerospace, electric vehicles and life sciences are great news for manufacturers in these sectors, while support for new green hydrogen projects across the UK could be a game changer. These are already some of the most advanced, efficient, and tech-savvy sectors in our economy, and these commitments can help them become world-leading.”
Let's hope this time next year, we will all be reflecting on the progress and positive contribution the manufacturing community has made to elevate the lives, communities and society of the UK.
