SECTOR FOCUS: INTERNATIONAL TRADE


Barometer shows manufacturers are feeling pressure from Brexit


Concerns over Brexit are stifling South West SME manufacturers’ export growth as firms focus on stabilising their current position, according to recent figures. The South West Manufacturing


Barometer reveals manufacturers' fears over ongoing Brexit uncertainty, highlighting that their attention must be on consolidation, especially as they also anticipate an overall slowdown in increased sales coupled with a struggle to recruit more staff in the short term. These are the headline findings of the latest South West Manufacturing Barometer, part of the UK’s largest and widest-ranging survey of the SME manufacturing sector, conducted by SWMAS (part of the Exelin Group). The sector's senior decision


makers were asked about their aspirations, plans and fears, as well as their overall business performance in the past six months. South West manufacturers who already send their goods overseas (67% of respondents) and those who plan to export (nine per cent) together reported an anticipated average increase in turnover of just 1.4% generated by exports over the coming year (2018/19), compared to the national average of 2.1%. The same group predicts exports will


Simon Howes, CEO of Exelin Group Turning to recruitment, 44% of ‘Brexit is


clearly foremost in the minds


of South West manufacturers’


increase, on


average, by 10% between now and the summer of 2020,


compared to the national figure of 12%. “The picture emerging from our


research is of a sector focused on consolidating what they already have for at least the next 12 months, by when we will finally know what a post-Brexit UK will look like,” said Simon Howes, CEO of Exelin Group. He continued: “While South West manufacturers’ cautiousness about export growth amid the current chaos is no shock, it is encouraging to see their ambitions for 2020. Not only does


Full steam ahead to Russian port city


Devon business leaders are planning to visit the Russian city of Novorossiysk to forge new export opportunities from 24 to 28 September 2018. Representatives from South West business consultancy


International Trade Matters (ITM) are organising the visit, supported by the Devon Chamber of Commerce. The trade delegation is looking to increase trade links with the Black Sea port, and is twinned with the city of Plymouth since 1956. Linda Middleton-Jones (pictured), Managing


Director of International Trade Matters, said: “Delegates from across the South West are looking to take part in the trade visit, and we’re looking at many sectors of interest from creative, media, IT, cosmetic, educational, English language learning, agricultural exporters, manufacturing, tourism and retail. Our focus will be developing our commercial partnerships and links.”


Anyone looking for more information about the trade visit to Novorossiysk can email: linda@middleton-jones.com or www.internationaltradematters.com


this reflect the vision of our region’s manufacturers, it also shows that for a large and influential part of our economy there are many optimistic signs of life after Brexit.” The Barometer also revealed slow


growth when it asked South West SME manufacturers to reflect on their performance in the last six months. According to the survey, while


over half (57%) reported an increase in sales, this was in fact the lowest figure recorded since Q3 2016. Those investing in new machinery and premises dropped to 42%, compared to the previous quarter's 49%, and this was broadly in line with the national picture.


South West manufacturers increased headcount, but this was partly offset by more than a fifth who reported a reduction in staff numbers, sending overall recruitment numbers for the region back to levels not seen since the middle of 2016. This trend looks set to continue,


with the number of manufacturers looking to recruit between now and the end of the year dropping to 49%, well down from last quarter's 58%. Simon added: “Brexit is clearly


foremost in the minds of South West manufacturers. Many of the region's firms are maximising their current opportunities, whilst making the most of this uncertain time to invest in capital equipment, staff development and new products, ready to take on the challenge - and opportunities - once the UK finally leaves the EU.”


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