Rising energy costs are the greatest concern for UK manufacturers, a new survey shows.
The Institution of Mechanical Engineers’ (IMechE) survey found that of the 1,000 manufacturers polled, 60 per cent said that increasing energy costs were of “high concern”.
While 52.4 per cent were concerned about the increasing cost of supplies and components, 43.2 per cent on administrative burden or regulation and 35 per cent on rising labour costs. Falling consumer spend was of high concern to 30.9 per cent of manufacturers, while exchange rates just 29.1 per cent.
IMechE president John Wood said: “The UK is showing clear international leadership by moving forward with its transition to a low carbon economy, and this is going to mean higher energy costs for everybody.
“But manufacturers are worried, and Government needs to make sure it doesn’t force energy intensive industries out of the UK and into countries with more lax climate change targets. This is of benefit to neither the UK economy nor the environment.
“The Government needs to move forward quickly with its promises to mitigate the effect of ambitious climate change targets on energy intensive industries in the UK,” Wood said.