LEADERSHIP

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anufacturers around the world have had a challenging year in 2019 . The impact of the ongoing trade dispute between the US and China and uncertainty surrounding the UK ’ s withdrawal from the EU have both contributed to the slowing of the global economy , which will have given the sector ’ s leaders many sleepless nights this year .

For the UK it has been particularly volatile , with global headwinds compounding the Brexit-related issues the sector faces . Input cost rises , uncertainty around tariffs after its withdrawal from the EU and unprecedented levels of stockpiling , along with a fall in investment levels in both technology and talent , have stagnated growth and resulted in a sharp rise in business failures . The number of manufacturing businesses entering insolvency has reached its highest level in five years in 2019 , rising 7 % year-on-year .

Manufacturers will be hoping for a turnaround in fortunes in 2020 . With the likelihood of Brexit coming to fruition and the prospect of an end in sight for the political deadlock , the outlook is somewhat brighter for UK manufacturers . But uncertainty is likely to persist throughout any transition period for as long as the threat of a no-deal withdrawal remains on the table .

JANUARY 2020