Manufacturing sector '˜growing and resilient' despite upheaval

Carried out for representative body Manufacturing NI (MNI) and legal firm Tughans, the survey shows that despite several setbacks in recent times, local manufacturers remain positive and resilient in the face of powerful political headwinds.

The survey, conducted by Perceptive Insight shows that the shadow of Brexit and local political uncertainty looms large and is impacting on the sector making a larger contribution to employment.

The survey, which included companies from all 11 council areas, showed that 72% of respondents described their business as currently growing whilst 55% said they expected that growth to continue over the next 12 months.

Almost half (45%) of firms reported an increase in staffing levels with 55% expecting to take on more workers in the next 12 months.

However, inflation, heavy taxation and VAT continue to challenge the sector with 60% of businesses also citing pension contributions and the Apprenticeship Levy as amongst their most prevalent concerns.

Uncertainty surrounding Brexit is also revealed as a key factor in business planning. Businesses who export to the Irish Republic are particularly concerned.

In general, Brexit is expected to negatively impact 41% of the businesses surveyed with a further 41% still unclear about what the future holds for them post-Brexit.

Just 11% said they believed Brexit would be positive for their business.

“This is the most comprehensive survey that has been done of the sector this year,” said MNI CEO Stephen Kelly.

“Far from the sunset industry some may think, it shows a vibrant, successful and growing sector making a larger contribution to the economy and jobs and poised to have a bigger impact if we can provide them with the right political, economic and trading environment.”

But while there was optimism, Mr Kelly said the survey also put into sharp focus the many challenges faced by the sector particularly the lack of local governance and the resultant stagnation with regard to updating legislation and introducing new policies.

“The clear message from the sector is an urgent need for clarity and direction on Brexit and on where our economy is going from a re-established NI Executive and Assembly,” he said.

James Donnelly, partner at Tughans said: “It’s good news to see the level of positive performance experienced by local manufacturers.

“With the majority of surveyed businesses in recruitment mode it is a concern that skilled workers such as those with engineering and automated manufacturing skills are proving difficult to find.”