Brexit concerns for manufacturers

Almost one-quarter of Scottish manufacturers have lost or are at risk of losing staff due to Brexit.

Businesses surveyed for a new report said this was due to uncertainty over post-Brexit EU workers’ rights and a drop in the value of the pound.

Some 22% of respondents cited Brexit concerns and uncertainty over future trading tariffs as a key barrier to growth, the Manufacturing and Engineering Report 2017/18 found.

The survey was conducted by Dundee-based chartered accountants Henderson Loggie, in conjunction with the MHA association of UK independent accountancy firms and Bank of Scotland, questioning 50 Scottish businesses as part of a survey of 460 UK-wide.

It found that Scottish manufacturers are optimistic about growth prospects in the coming year, with 65% predicting growth in the next 12 months.

Almost half (45%) of businesses expect staff numbers to increase in the next twelve months, however 72% of respondents have difficulty recruiting employees with the relevant skills.

Gavin Black, manufacturing lead at Henderson Loggie, said: “Scottish manufacturers are largely positive in their outlook and prospects for growth, and the sector is certainly gritting its teeth in what has been a difficult and uncertain period.

“However, we should not be complacent and the survey has found that despite the ambitions, growth is being constrained and companies in the sector continue to be under increasing pressure to cut costs, meet the rising prices of raw materials and embrace new technologies if they are to survive.”