SOUTH WEST BUSINESS NEWS inform South West firms stay optimistic


South West manufacturers and engineers continue to be optimistic of their future growth prospects, but Brexit is having an impact on recruitment, according to a new survey from MHA and Lloyds Bank Commercial Banking. Leading the survey for the South West, MHA


member firm and regional representative Monahans has spoken to businesses to put together a snapshot of the trends and challenges the sector is facing. This year’s results show that nationally skills shortages remain a major concern to businesses, with 20% of firms saying that they either have lost, or are at risk of losing staff as a direct result of Brexit, mainly due to the uncertainty over workers’ rights. Across the South West, manufacturers are reporting positive economic development in the past year with 66% of respondents reporting growth – and 27% reporting very encouraging growth levels of 10% or more. Optimism levels remain high as well – with


80% of businesses anticipating revenue growth in the coming year from increased demand and the expansion of their product ranges, even with ongoing concerns over Brexit. Research and development (R&D) expenditure


lags behind the national survey averages with only 29% – compared to 47% nationally – investing between one per cent and six per cent of their turnover on the next generation of


Brexit is having an impact on recruitment


products and process. Only 13% of businesses in the South West area report that they do not invest anything in R&D, but there is work to be done in raising awareness of the R&D tax credit regime as 44% of businesses have not made a claim in the past 12 months. This was also reflected in the level of businesses, which


knew about or had accessed other grants or government funding available to them, with only 25% doing so. Short and longer term, business confidence


remains high and in line with national trends, but getting the right skills continues to represent a barrier to growth for 30% of business. Iain Black (pictured), manufacturing partner at the South West accountancy and business


advisory firm Monahans, said: “It is very encouraging to see the positive forecast continue for the manufacturing industry in the South West again this year. “Not surprisingly, recruiting and retaining


skilled workers remains an issue, which has not been helped by Brexit. We are still facing uncertain times across the economy and businesses could be in a stronger position should they access funding available to them.” David Beaumont, regional director for SME


banking in Lloyds Bank Commercial Banking in the South West, said: “The South West has a rich history in aerospace, automotive and rail sectors to name just three and these are helping to drive the local economy. The manufacturing sector faces challenges but we continue to support it as part of our Helping Britain Prosper commitment.”


NOVEMBER/DECEMBER 2017 insight 7


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