The quarterly survey of 331 industry leaders focused on the industry’s attitude to Brexit, over a year after the referendum. Around 50% of respondents cited the need for free trade as a key priority, as well as the need for government to move quicker through the negotiations.

The survey, conducted by SWMAS (part of the Exelin Group) and Economic Growth Solutions (EGS), also asked about the impact of Brexit on their business to date. Just over 40% of manufacturers said it had already had a negative impact, and 47% anticipate tougher conditions to come once the UK leaves the EU.

Half of businesses said they felt the government had not taken their needs into consideration in the Brexit talks so far.

Says Exelin Group chief Simon Howes: “SME manufacturers are sending a clear message to Government. The vast majority want to see free trade with the EU maintained to help minimise the cost of imports and keep red tape to a minimum.

“Some manufacturers are already seeing the cost of materials rise due to recent falls in the value of Sterling against the Euro and uncertainty over the future of the UK’s trade arrangements with the EU.”

He continues: “Another clear concern for SME manufacturers is for the Government to clarify its Brexit plan as soon as possible to avoid any further slips in business confidence. 

“Manufacturers need a firm ground to trade from and, at present, many feel they are standing on ‘shifting sands’. SME manufacturers make up over 95% of industry and their voice needs to be heard. Unfortunately, the survey shows that most of them do not feel this to be the case – the Government needs to take heed.”

In spite of the Brexit concerns, a total of 57% of those surveyed said turnover had increased in the quarter – a 14% increase on the same period last year. Nearly 40% also reported an increase in profits in the past six months, with 31% seeing a decrease.

Adds EGS chief Lorraine Holmes: “The figures are still a lot higher than they were this time last year and the feedback we are getting from the firms we help on the ground is fairly positive. There’s lots of plans for expansion, investing in apprentices, innovation and export. However, we need a much clearer idea of how Brexit is going to play out to help minimise any adverse effects on our hugely important SME manufacturing sector.”