Following a recent industry survey, manufacturers in the U.K. disclosed that the country has become less competitive and less attractive to foreign investors, as a result of soaring energy costs and recent political upheaval.
43% of manufacturers disclosed that Britain has become less attractive, while 31% of workers think it is a competitive location.
Britain’s manufacturing industry is currently facing falling output, fewer orders, and higher prices in its worst monthly performance for two-and-a-half years, a new assessment disclosed.
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Rob Dobson, director at S&P Global Market Intelligence, said: “Output contracted at one of the quickest rates during the past 14 years, as new order inflows weakened and supply chain issues continued to bite.
“The decline in new business was worryingly steep, as weak domestic demand was accompanied by a further marked drop in new orders from overseas.
“Clients are increasingly downbeat and reluctant to commit to new contracts, not just in the UK but also in key markets like the US, China, and the EU.”
He said that the number of workers employed in manufacturing had fallen for the third month in a row.
Following the survey of energy bills in the country, the number of UK households in arrears on their energy bills soared to record levels in the second quarter of 2022, with more than two million behind on their electricity payments.
A panel of lawmakers last year in December, disclosed that the UK government’s cost of living support for households struggling with sky-high energy bills may be contributing to labour shortages by discouraging people from seeking work.
On the other hand, the year 2022 was one of the most tumultuous years in modern British politics. The country went through three prime ministers, with its current prime minister Rishi Sunak coming into power after his predecessor Liz Truss resigned after just six weeks in office.
The director of the International affairs think tank Chatham house disclosed that the events of last year, with three prime ministers occupying No. 10 Downing Street, had shattered the country’s image.