UK High Tech Manufacturers Stay Confident About 2012

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Jan 04, 2012, 05:16 ET

LONDON, January 4, 2012 /PRNewswire/ --

71% of high tech manufacturers predict business growth for 2012
26% say business will grow by more than 10%
84% busy or operating near to capacity
30% believe UK has improved competitiveness vs. Europe in last 12 months
Only 15% positive about general UK economy

The UK high tech manufacturing sector still remains positive about prospects for 2012 according to a new survey.

71% of the 362 high tech manufacturers questioned in the GE High Tech Index believe their business would grow in 2012. 45% felt they would achieve growth of over 5%, and 26% said, despite current uncertainties, they would achieve growth of more than 10%.

UK high tech manufacturers also remain positive about current trading conditions. 73% said they were positive about current trading, slightly down from June 2011 when 77% of businesses were positive about current trading.

Respondents felt the current Eurozone situation could provide UK high tech manufacturers with opportunities. 30% said that the UK had generally become more competitive than other major European economies. The health of the sector was reflected by 84% of the respondents saying they were either busy or operating almost at full capacity; although this is down from 88% in June 2011.

46% of respondents were planning to increase staffing levels over the next 12 months. The main reasons for growth cited were improvement in demand from emerging markets, internal improvements in products and services and changes to the business environment such as low interest rates and the favourable exchange rate.

GE UK CEO Mark Elborne commented: "These figures demonstrate UK high tech manufacturing can play a pivotal role to play in turning round the UK's economy. It is extremely encouraging to see a good proportion of these firms are expecting significant growth in the next 12 months. However we need to ensure the conditions are right to help them to grow. Access to finance is important but ensuring the UK is developing the right skills base and encouraging an atmosphere of innovation and collaborative thinking is important."