British manufacturing is experiencing a post Brexit boom and orders have hit historic highs. The boom, which is partially due to a weakened pound, has caused optimism throughout the industry and prompted unexpected investment and growth.

A survey conducted by the EEF, the manufacturing industry’s representative organisation, has shown that 33 per cent of companies asked said that they were enjoying increased sales. The EEF supported this claim by saying that exports are “back at historically high levels and look set to maintain momentum into the final months of the year”.

As well as the weakened pound, the Eurozone is experiencing a surge of strength, brought on by the European Central Banks stimulus of low interest rates that has appeared to work - this surge in strength is also thought to be helping boost British manufacturing exports.

When asked about this by the Financial Times, EEF chief economist Lee Hopley said “We have had a decade where we have been worried about the weak performance of the eurozone,” Hopley continued by saying. “Now we are looking at a cyclical upturn spurred by lots of stimulus . . . and the UK is benefiting.”

The results of the EEF survey also show that the number of companies taking on new employees has hit a three year high and this is a sign of growth in the face of an uncertain future – the details of the UK’s divorce from the EU.

What little growth the manufacturing industry is seeing as a result of increased orders and exports, is being achieved quickly and this is in part due to other sectors that are currently thriving, fintech being one of them.

Companies like MarketInvoice are enabling British manufacturing businesses to release capital owed to them from outstanding invoices from both at home and overseas. And it is this capital that, in many cases, is driving growth.

The news is not all positive for the British manufacturing sector however, the EEF also reported that they had detected concerns from within the sector about the wider growth of the economy and reported that “After a number of years of healthy expansion, the motor vehicle sector has come off the boil considerably in 2017.”

Nowhere is this more visible than in the, now uncertain, investment pledged by car giant Toyota. Toyota announced plans, back in March, for a £240 million investment in its production plant in Derbyshire.

The investment, however, is now in jeopardy due to uncertainties over future import and export tariffs between Britain and the EU.

The EEF report comes ahead of the UK governments long-awaited industrial strategy and while the report will hold welcome news for the government, it also highlights ongoing problems.

Over a year down the line from the Brexit vote, British manufacturing may well be booming, but in many areas of the economy the shadows of doubt and uncertainty are still long. And, with the impending end to the British summer, manufacturers can only hope that they are not in for a long, cold and miserable winter of discontent.

Published by sandeep Malik