Latest news with #SeamusNevin
Fibre2Fashion
19 hours ago
- Business
- Fibre2Fashion
UK manufacturers drop US as top export market amid trade woes: Survey
UK manufacturers have dropped US out of the top 3 global export growth markets for the first time, according to a major survey. It has now fallen to fourth place, with manufacturers now favouring Asia/Oceania and the Middle East in response to mounting trade barriers and economic unpredictability, as per the Make UK/BDO Q2 Manufacturing Outlook survey. Historically a consistent second to the EU, the US' diminished appeal comes as six in ten UK firms anticipate a decline in export volumes to the country. A similar share (63 per cent) expects their business to suffer due to tariffs, while nearly a third (30 per cent) are reconsidering their supply chain sources, revealed the survey. The findings aligned with separate data from the National Association of Manufacturers, which showed optimism among US manufacturers has plunged to its lowest level since the pandemic. A striking 77 per cent of American manufacturers identified trade uncertainty as their primary concern. UK manufacturers have dropped US from their top 3 export markets for the first time, as firms shift focus to Asia/Oceania and the Middle East amid tariffs and uncertainty. Make UK slashed its 2026 growth forecast to -0.5 per cent, citing high energy costs and weak investment. Despite Q2 output rebounding to 9 per cent, investment intentions remain fragile, with future growth at risk. The outlook for UK manufacturing appears increasingly bleak. Make UK has slashed its 2026 manufacturing growth forecast from 1 per cent to -0.5 per cent, following an expected contraction of -0.2 per cent in 2025 and stagnation in 2024. The data points to a worrying trend of prolonged industrial decline. Make UK has urged the government to prioritise a robust industrial strategy, warning that the UK's high industrial energy costs must be tackled to reverse the sector's downturn. 'While at first glance the headline numbers may not look too bad, manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis and eye watering energy costs which are providing a harsh reality for many,' said Seamus Nevin, chief economist at Make UK. 'In response, it is essential that the forthcoming industrial strategy takes bold measures to bring down the cost of energy and takes equally radical action to ensure companies can access the people they need to take advantage of a more competitive landscape. If these two issues are not addressed, then we will face the serious prospect of the UK accelerating into de-industrialisation,' added Nevin. 'This quarter's results are a testament to the increasingly challenging landscape our British manufacturers are operating in. The forecasted decline in growth is concerning and the delayed industrial strategy won't help to assuage uncertainty in the sector,' said Richard Austin, head of manufacturing at BDO . 'That said, there remains pockets of positivity. Growing output levels are proof of manufacturer's resilience and last month's trade deals should remove barriers as UK companies seek new trading partners and opportunities for growth. As always, they need urgent clarity and targeted investment from the government if this recovery is to continue into next quarter,' added Austin. The UK manufacturing output rebounded to 9 per cent in Q2 from -1 per cent in Q1, with total orders improving to -2 per cent from -6 per cent, according to the latest manufacturing outlook survey. The export orders rose to 7 per cent, offsetting weak domestic demand (-1 per cent). Looking ahead, output is forecast to reach 11 per cent, with exports expected to climb to +22 per cent, surpassing long-term averages. However, recruitment remained flat at 1 per cent, and investment intentions continued to slide, falling to 2 per cent from 5 per cent in Q1. Make UK has warned that if this trend persists, investment could turn negative later in 2025—posing risks to much-needed industrial growth. Fibre2Fashion News Desk (SG)
Telegraph
4 days ago
- Business
- Telegraph
British manufacturers snub US after Trump's trade war
The US has dropped out of the three most desirable markets for British manufacturers for the first time in decades, as Donald Trump's trade war dents confidence in the world's biggest economy. UK industrial leaders now prefer the EU, Asia and the Middle East as their top three 'growth' markets globally, according to trade body Make UK – relegating the Trump's America to fourth spot. It is the first time since Make UK began the survey in 1988 that the US has not been the second most attractive market for British manufacturers. The EU has consistently been ranked in first place. The drop in enthusiasm underlines the extend to which Mr Trump's ongoing trade war has affected how companies now view America as a place to do business. Despite Mr Trump's push to bring more manufacturing jobs to America, just 4pc of companies polled by Make UK – which represents 20,000 businesses – said they would consider setting up a US manufacturing facility. Seamus Nevin, Make UK's chief economist, said: 'There has clearly been an immediate and striking shock to the system as far as the special trading relationship with the US is concerned for manufacturers. 'It remains to be seen whether this is a one off drop in sentiment while trading relations enjoy a reset or, whether this is the first sign of a permanent fracture in relations with manufacturers' biggest market.' The drop in enthusiasm comes despite Sir Keir Starmer having agreed a trade deal with the US last month. The deal, which is yet to come into force, was hailed by the Government as a 'landmark agreement' that would save thousands of jobs and make it easier for British firms to do business across the Atlantic. However, Mr Nevin said: 'Even when the trade deal comes into force, UK goods will now be more expensive and moving forward companies may just decide that it's now easier to turn their gaze towards markets elsewhere where there are fewer barriers to doing business.' UK exports to US fall by £2bn It comes after official data last week showed that UK exports to the US fell by £2bn in April – their largest decline on record. Almost two thirds of companies surveyed separately by Make UK said they expected their US export volumes to drop amid the trade war, while a similar amount said they expected a negative hit to their business more broadly. Almost a third said they were thinking about changing their supply chains and sourcing arrangements. The US president has pitched his tariff blitz as a painful but necessary step to lower America's reliance on overseas imports and encourage inward investment. However, sentiment among US manufacturers has soured too, dropping to its lowest level since the pandemic – according to the US's National Association of Manufacturers. This is despite the repeated promises by Mr Trump that his policies will boost the domestic industry. Make UK also warned of worsening prospects for British manufacturers at home after growth forecasts for the sector were slashed from 1pc to -0.5pc for 2026. As well as the impact of Mr Trump's trade war, companies are facing increased employment costs after Rachel Reeves increased employers' National Insurance (NI) contributions in her October budget, which took effect in April. Mr Nevin added: 'While at first glance the headline numbers may not look too bad, manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis and eye watering energy costs which are providing a harsh reality for many.' In a separate survey released on Monday, a poll showed foreign investors had become significantly less enthusiastic about investing in Britain. The number of investors planning to invest in Britain dropped from 62pc in March to 52pc in May, a separate survey by auditor Ernst & Young found. However, 54pc said they expect the UK's attractiveness to increase in the next three years, in a sign that Donald Trump's policies are encouraging investors to look beyond the US for opportunities.
Daily Mail
5 days ago
- Business
- Daily Mail
Exports to US fall as Donald Trump's tariffs bite
British manufacturers are turning their backs on exporting to the US after Donald Trump's tariffs. The President unleashed a barrage of tariffs earlier this year – and now a survey from manufacturing trade body Make UK has shown that six in ten British firms believe volumes they ship to the US will be hit. The group also slashed its growth forecast for manufacturing in 2026 from +1 per cent to -0.5 per cent – blamed on both a weak economy at home and uncertainty from US tariffs abroad. Data this month showed exports to the US fell £2billion in April. It was previously the second top destination for UK manufacturing exports, behind the EU. Now firms prefer Asia, Make UK said. Seamus Nevin, Make UK's chief economist, said Labour needs to take 'radical action to ensure companies can access the people they need to take advantage of a more competitive landscape'.
