Rising energy costs are of greater concern to UK manufacturers than labour costs, falling consumer spend and the administrative burden of regulation, according to a new survey by the Institution of Mechanical Engineers.
The Institution’s 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 costs for everybody.
“But manufacturers are worried, and the 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,” he added.
Of the 1000 manufacturers polled, 60% said that increasing energy costs were of ‘high concern’ to their business, while 52.4% said the same about increasing costs of supplies and components, 43.2% on administrative burden or regulation and 35% said rising labour costs. Falling consumer spend was of high concern to 30.9% of manufacturers, while exchange rates just 29.1%.
“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,” said Mr Wood.