NI: Manufacturing survey for Tughans reveals positive outlook
A survey conducted for Manufacturing NI and law firm Tughans has revealed a positive outlook for Northern Ireland’s manufacturing sector.
Despite high profile job losses, the survey identified a sector which is growing, putting on jobs, inflation busting pay rises and resilient in the face of powerful political headwinds, despite the shadow of Brexit.
The survey, which included companies from all 11 council areas, showed that 72 per cent of respondents described their business as currently growing whilst 55 per cent said they expected that growth to continue in the next 12 months. Nearly half (45 per cent) of firms reported an increase in staffing levels with a majority (55 per cent) expecting to take on more workers in the next 12 months.
Inflation, heavy taxation and VAT continue to challenge the sector with 60 per cent of businesses also citing pension contributions and the Apprenticeship Levy as amongst their most prevalent concerns.
Businesses who export to the Republic of Ireland are particularly concerned with Brexit. In general, Brexit is expected to negatively impact 41 per cent of the businesses surveyed with a further 41 per cent still unclear about what the future holds for them post-Brexit. Only 11 per cent believed that Brexit would be positive for their business.
Planning, infrastructure, green energy and GDPR compliance are all high on the list of legislative or policy areas of concern for the sector.
Tughans corporate partner James Donnelly said: “It’s good news to see the level of positive performance experienced by local manufacturers with 57 per cent of respondents recording increased sales in the last year. With the majority of surveyed businesses (83 per cent) in recruitment mode it is a concern that skilled workers such as those with engineering and automated manufacturing skills are proving difficult to find. Another reason why this sector, as well as the Northern Ireland economy generally, needs to see local government restored.”
The Manufacturing NI and Tughans NI Manufacturing Survey was carried out in May 2018 by Perceptive Insight. Respondents represented companies from across Northern Ireland including those employing up to 1,000, with the majority in the 10-49 bracket.
The top three manufacturing sectors who completed the survey were machinery and equipment; wood, paper products and printing; rubber, plastic and other non-metallic mineral products.