UK Food and Drink Manufacturers Poised for Renewed Investment – FDF Report
Source: DairyNews.today
The UK's food and drink manufacturing sector is signaling a renewed commitment to investment, according to the latest report from the Food and Drink Federation (FDF). The State of Industry Q2 2024 report, published on August 15, reveals that nearly 90% of food and drink manufacturers plan to maintain or increase their investment levels over the next year. This marks a significant shift in sentiment following years of inflationary pressures and consumer resistance to price increases.
The report suggests that the sector has "turned the corner" after experiencing a 30% decline in investment since 2019, driven by policy instability and external economic shocks. However, the FDF has called on the new Labour government to take decisive action to unlock the industry's full growth potential.
Manufacturers are now seeking long-term investment opportunities in manufacturing and supply chains, with over a third planning to boost their R&D spending in the coming year. Despite this optimism, concerns remain regarding policy and regulatory uncertainty, particularly around non-tariff barriers that could undermine the industry's export competitiveness.
Balwinder Dhoot, FDF’s Director for Sustainability and Growth, expressed cautious optimism: "While investment in our sector remains down by a third compared to 2019, it’s encouraging that manufacturers are planning to increase or sustain their investment this year." He emphasized the importance of a well-crafted industrial strategy in partnership with the UK’s largest manufacturing sector to address critical challenges, including food security, health, productivity, and achieving net zero targets.
The report also highlights the need for reforms to the Apprenticeship Levy, which could help the industry address skill gaps and labor shortages. Over half of manufacturers expressed a desire to use levy funds for engineering conversion modules or business improvement techniques, which could further bolster the sector’s growth.
Manufacturers are now seeking long-term investment opportunities in manufacturing and supply chains, with over a third planning to boost their R&D spending in the coming year. Despite this optimism, concerns remain regarding policy and regulatory uncertainty, particularly around non-tariff barriers that could undermine the industry's export competitiveness.
Balwinder Dhoot, FDF’s Director for Sustainability and Growth, expressed cautious optimism: "While investment in our sector remains down by a third compared to 2019, it’s encouraging that manufacturers are planning to increase or sustain their investment this year." He emphasized the importance of a well-crafted industrial strategy in partnership with the UK’s largest manufacturing sector to address critical challenges, including food security, health, productivity, and achieving net zero targets.
The report also highlights the need for reforms to the Apprenticeship Levy, which could help the industry address skill gaps and labor shortages. Over half of manufacturers expressed a desire to use levy funds for engineering conversion modules or business improvement techniques, which could further bolster the sector’s growth.
23.09.2024
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