In order for Murray McIntosh to successfully serve our clients in Berkshire, London, and beyond, we must constantly keep an eye on market trends so that we might provide the best possible services for those looking to hire as well as individuals applying for work. In light of that, our market research shows that manufacturing is up and down right now. Some aspects of manufacturing are rather strong; other areas look as if they could be heading for problems.
A number of news reports back up our research, including a February 1 (2016) story published by The Guardian explaining that the globally recognised PMI index showed UK manufacturing at an all-time high in January at 52.9. Economists generally agree that the 50-point mark is the determining factor between expansion and recession, so having the number so high at this point is relatively good news.
On the other hand, a global economy that is still lagging has put a damper on exports. That means UK manufacturers are not selling as many of the goods they are producing. Manufacturing has to be slowed in order to make up for poor export performance. Whether exports pick up remains to be seen in the coming quarters.
Help from the Government
In the midst of the up-and-down manufacturing environment, companies and industry trade groups are lobbying the government to be very wary of increasing taxes and fees on manufacturers to balance the budget. Chancellor George Osborne, in anticipation of his upcoming budget announcement, has already suggested there will be more cuts in the future to keep the country financially sound.
Manufacturers are warning that new green taxes and the apprenticeship levy are going to make it more expensive to do business. They are petitioning Osborne to promise that the planned increases for this year do not signal the implementation of a broader strategy that will result in a 'creeping onslaught' of new taxes and fees that could strangle manufacturing.
Unfortunately, we are not yet at a point where we can say manufacturing is on the precipice of dynamic and significant growth. For now, manufacturers are keeping their heads above water while they wait for the economy to further expand. We will continue to do our part by serving clients in need of recruitment in Berkshire, London, and throughout the UK.