UK industry to create tens of thousands of jobs
Food and drink firms in the UK will create more than 73,000 new jobs by 2020, according to a new study by Lloyds Bank Commercial Banking.
The second annual study Investing for Growth, which surveyed English and Welsh producers of alcohol, fresh produce and food and drink products, also found confidence strong across Britain’s biggest manufacturing sector, with firms planning to develop innovative new products and increase export activity.
The forecast for job creation in this year’s report is strong, with firms planning to create more than 73,000 new jobs over the next five years. Against this backdrop, just over a third (34%) plan to drive business growth through job creation.
However, with the sector facing the retirement of hundreds of thousands of workers by 2020, over a quarter of survey respondents (28%) cited a lack of skilled labour as one of the biggest challenges facing the food and drink industry today.
Key report findings include:
- 100% of firms expect to grow over the next five years, up from 98% last year
- More than four in five firms (82%) forecast up to 25% growth over the next five years
- The majority of firms are focused on both entering new markets in the UK (56%) and developing new products (55%) as a way of achieving their growth ambitions
- 72% of producers plan to enter new international markets in the next five years, up from 63% in 2014
- Western Europe remains the most popular export market (60%), with North America (49%) second, followed by the Far East and Asia (43%)
- Firms plan to invest on average a quarter of current turnover into R&D over the next five years.
Andrew Connors, head of mid-sized business at Lloyds Bank Commercial Banking, says, “The contrast between the 2014 report and our latest research is really positive, with significant job creation and investment figures revealed.
“Productivity presents an ongoing challenge for the UK economy. Against this backdrop, the continued commitment from food and drink manufacturers to drive productivity and innovation through R&D is a clear indication of the crucial role this sector plays in the broader economy.”
Ian Wright, director general at the Food and Drink Federation, adds, “This report confirms that trading internationally is a real driver for growth, especially the opportunities offered by non EU markets and developing economies.”
Other findings reveal:
- 74% view the greater emphasis on public health awareness as a positive opportunity for the industry
- 44% say a possible exit from the EU is the biggest challenge for the industry over the next five years
- A third (35%) believe volatile energy prices are the most significant issue for the sector, while 30% believe the same of volatile raw ingredient prices.
