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Is Brexit Putting A Halt To Manufacturing Investment?


Brexit has caused a downturn in investment for the manufacturing sector.

Lead to a fall in development and innovation.

Needs to be a show of confidence from the UK government to instill it back into the manufacturing industry.

In a recent study, it was found that many investors are holding back plans in the manufacturing industry as a direct result of Brexit. Uncertainty over what the change will bring for the industry has, to a large degree, reduced confidence in the sector.

This is not restricted to stock investment alone, either. Companies are reluctant to invest in plant and machinery placement in their own business, as they are unwilling to spend money that may not be there after Brexit hits. This uncertainty has lead to a warning from the manufacturing community to the UK government: provide clarity over the Brexit deal or risk losing jobs and money from the manufacturing sector.

The confusion has already lead to a loss of investment, any more and the sector could see a sharp fall in development post-Brexit.

Global demand for manufacturing and increased innovation should be producing a climate of plenty for the manufacturing sector. But, this foggy political climate has put a damper on proceedings. New opportunities are being missed, either due to a lack of investment or the fear of having no investment in the future. Curtailing the industry when it should be seeing a tremendous rise.

Brexit has also caused many to hold back investment in the UK manufacturing sector, as well as a lack of investment to improve efficiency in the sector. Suggesting that UK companies and the industry as a whole will not, in the future, be able to compete with other countries who are fully confident in their manufacturing investments.

The Chamber of Commerce has also spoken out. In statements made at the end of last year, they have urged the government to help companies prepare and deal with Brexit. Rather than the current strategy, which seems to be offering promises of small things but nothing firm.

From manufacturers of ventilation systems all the way to aerospace sector, there needs to be a firm line for moving forward set in place by the government. As well as the promise of investment and help once Brexit has occurred, to provide confidence to the manufacturing sector in what may prove to be a difficult time. A show of confidence by the government may, in turn, prove a rallying call to investors that all is not lost for the UK manufacturing industry.