Industry confidence on the rise, says FDF

A new report from the Food and Drink Federation (FDF) has highlighted an improvement in industry confidence. While official data signalled weak investment and growth for food and drink manufacturing in the first three quarters of 2019, optimism improved in Q4.

The 2019 Business Confidence Report revealed that 47% of manufacturers foresee UK business investment rising in 2020. The data also shows that 63% see increased domestic demand as an opportunity this year, and over 40% are looking forward to increased certainty over the UK’s future EU relationship.

In Q4 2019, 33% believed business confidence would rise in 2020, compared to just 2% in Q4 2018 who felt this way about the year ahead.

Businesses cited Brexit-related factors as potential barriers for success in 2020 however, with UK import tariff uncertainty and the possibility of failing to secure a free preferential trade agreement with the EU concerns reported by over 50% of manufacturers. Two thirds of manufacturers also highlighted the cost of ingredients, inconsistent policies on plastic reduction and border/customs issues as key concerns.

FDF chief executive Ian Wright CBE commented, “It’s no surprise that the industry remains troubled following a period of sustained uncertainty, with our future relationship with the EU still unresolved. But our industry is phenomenally resilient.

“FDF is absolutely committed to working with Government and the devolved administrations to develop detailed plans and practical solutions for our vital industry as we leave the EU. It is essential that we minimise friction in whatever way possible, while maintaining high standards for UK food and drink.”