Manufacturers upbeat on exports but nervy on wider economy

The research, in which business leaders were surveyed on the conditions they expect their companies will face over the long term, found 57% of manufacturers had no plans to export in the next 10 years compared with 74% of UK businesses as a whole. Almost half (46%) of manufacturers responded positively about the UK's long term economic prospects compared with 23% who foresaw a worsening business environment. However, this was less positive than the economy as a whole, in which 50% of companies saw an improved business landscape in 2021. Manufacturers continue to look to developed markets for exporting, with the US predicted to be the number one region for export sales growth over the next decade, and China the only developing economy to make the top five, which also included Ireland, France and Australia. Germany was 6th. Certain sectors are even less confident about the future, with retailers the least positive over the long term, 55% predicting the UK will be a worse place to do business in ten years. Conversely 63% of tech sector businesses see the UK as offering a better place to do business in 2021. Mark Lee, Head of Manufacturing, Transport and Logistics, Barclays Corporate, commented: "It is clear that the majority of businesses believe in the fundamental strength of the UK as a place to do business, and this underlines the temporary nature of the challenges we are currently experiencing. It is also important to recognise manufacturers are more committed to exporting than almost any other sector. It is something that needs to be encouraged even further." Foreign investors stand to benefit from any economic growth, but manufacturers are the least likely sector to predict 'much more' foreign ownership in 10 years, just 27%, although another 48% predict 'somewhat more' foreign ownership. Lee concluded: "The UK has been a magnet for foreign direct investment for more than two decades bringing both benefits and challenges. While we can expect more international investment in the UK to stimulate economic development and job creation, there also needs to be consideration given to the fact decisions making, research and development and tax generation may be located elsewhere."