It has been a turbulent year for the UK, with sluggish economic growth and the political fallout of the Referendum on EU membership – as well as uncertainty caused by the General Election result – but there is still very much cause for optimism. Actemium’s Andrew Hunter sheds light on how the businesses he works with every day feel about their prospects in the second half of 2017.

A bright outlook for Midlands motor manufacturers

It’s been a turbulent year for the UK, with sluggish economic growth and the political fallout of the Referendum on EU membership – as well as uncertainty caused by the General Election result – but there is still very much cause for optimism. Actemium’s Andrew Hunter sheds light on how the businesses he works with every day feel about their prospects in the second half of 2017.

Having been with VINCI Energies UK & RoI since the year 2000, Andrew Hunter has seen it all. From his vantage point at the head of Actemium Birmingham, working with Midlands businesses involved with automotive manufacturing, he admits that the last 12-18 months have brought some surprises for the companies he speaks to every day. Still, he’s optimistic about the future.

“It’s a strange time, but I think the prospects for the next 6 months look good. Manufacturing generally, and the automotive sector in particular, looks fairly buoyant despite the picture of uncertainty we’re dealing with.”

Driving through uncertainty

Although things are generally positive, Andrew finds that the biggest challenge for businesses looking ahead is Brexit – and he’s not alone.

The most recent Manufacturing Barometer shows that, while many businesses don’t think Brexit has had affected their activities so far, there’s a worry about the effect it could have in the future.

As Andrew puts it, “Brexit is the major concern for manufacturers we talk to day-to-day, and in the medium to long term it’s already affecting investment decisions. What’s really worrying is the potential for tariffs on components we need to build cars here in the UK, and reduced access to skilled labour.”

Businesses in the Midlands aren’t alone in raising the alarm – the Society of Motor Manufacturers and Traders (SMMT) lists trade, talent and a relationship with the EU’s Single Market among its top priorities for Brexit negotiations.

Planning for the future

Andrew explains that uncertainty can make things difficult at times, particularly in the automotive and manufacturing sectors which have extended supply chains reaching across the Channel.

There’s a concern the UK could lack the capability to make components and equipment currently sourced from the EU, potentially leading to rising costs.

Andrew also highlights the UK’s need for ever more skilled workers, able to perform jobs may not even have existed 5-10 years ago. Advances in technology and evolving business models mean that companies need access to employees that are ahead of the times and able to adapt to new challenges.

Staying optimistic

Despite some potential worries about the future, Andrew thinks there’s reason to be optimistic in the second half of 2017.

“What’s encouraging is that companies across the country are still investing in research and innovation,” Andrew explains. “There’s a hunger amongst businesses we talk to to take advantage of the benefits solutions like Industry 4.0 can bring to a business – and digitalisation in manufacturing is still a big area of investment.”

Encouragingly, research from the EEF suggests that manufacturing performs 69 per cent of the UK’s overall business investment in R&D. Andrew’s advice to the companies he works with is to keep up this investment in new technologies and look for improved ways of doing business.

“The companies you see investing in the future, building on today’s strengths to prepare for the challenges of tomorrow – these are the businesses I think will be successful in 2017 and beyond.”