While the UK Industrial sector has performed well since the recession, particularly in value-added products with export potential, in recent months manufacturing growth has strengthened as the pound fell against major currencies, following the Brexit vote, encouraging exporters.
The Industrial Products sector continues to be viewed as critical to rebuilding UK growth and encouraging overseas inward investment, and this may now be easier with the benefit of a more competitive pound.
The prospect of uncertain European trading terms following on the result of the EU referendum, meanwhile, adds an unwelcome and continuing sense of uncertainty.
Significant emphasis is being placed by the most successful sector players on positioning product development and sales and marketing strategy to secure export sales to growing markets outside the EU, particularly in the Pacific Rim, South America and, increasingly, Africa.
Branded high-end goods which are manufactured in Britain have found ready markets in developing economies. In markets such as China and India, Jaguar Land Rover provides a leading example of what can be achieved, although this has recently proved harder in the face of weaker growth.
Suppliers to the leading exporting OEMs and providers of technical components or industrial support services are also well placed to benefit from this trend.
