It’s fair to say that the successful outcome of the Brexit referendum in 2016 came as a big surprise to lots of people here in Britain, and for a while this shock was reflected in the financial markets. Now though, the British economy is showing clear signs of stability. In fact, according to the Office of National Statistics, the UK manufacturing output is expanding at its fastest rate for a decade. Being in the roto moulding and plastic manufacturing industry means this is great news to us at Excelsior, and as our customers it’s great news for you too! So exactly how have things improved, and why?
UK Manufacturing Records Seven Consecutive Months of Growth
The figures for this growth have only been recently released by the Office of National Statistics, but the picture they paint is an optimistic one. The UK manufacturing industry – which includes plastics manufacturing – reached its seventh consecutive level of growth in November. In the last three months to November, its output was 3.9% higher than it was in the same period in 2016.
You may already know that 2017 actually started off a little subdued, with economic growth slowing in the first nine months due to higher inflation following the Brexit result. Following that, though, analysts reported that UK manufacturers (which includes British plastics manufacturers like us here at Excelsior) were “in good shape” by the end of the year, and the majority of subsectors experienced tangible levels of growth. According to one commentator, Britain’s manufacturing sector hasn’t seen this level of quarterly buoyancy since April 2008 – which makes it the strongest run of growth since 1997!
What Are The Reasons Behind It?
Essentially, British manufacturing is benefitting from two major factors at the moment: a weaker currency and global growth. The USA, China and Europe, which are the three big players in the global economy, are all doing well at the same time, and sterling’s drop in value has made UK exports more competitive. It’s great for plastic manufacturing businesses like us, and gives a big boost to the economy in general.
And it’s not done yet! According to Lord Jim O’Neill, a former Treasury minister and Remain supporter, the growth forecasts could well be upgraded even further. “I certainly wouldn’t have thought the UK would be as robust as it currently seems.” he says, before continuing: “That’s because some parts of the country, led by the North West, are actually doing way better than people seem to realise or appreciate.”
We’re hugely proud to be part of that powerhouse here at Excelsior – and determined to pass the benefits of that success onto you, our customers. In fact, Giles Fielding, our Managing Director, says it best:
“Despite some of the negativity surrounding the Brexit vote, we are very pleased to say that the level of new business won and enquiries coming through is extremely pleasing, not just from the UK but from Europe also. The weak pound has undoubtedly helped, and while we have seen some price increases from raw material suppliers, the general feeling here is one of determination and positivity for us and our customer base.”
So there you have it. If you want to take advantage of our fantastic core services here at Excelsior – which includes roto moulding plastic products – don’t hesitate to get in touch, either by emailing email@example.com or giving us a call on 0161 765 2010.