Positive investment intentions bode well for MACH 2022

The latest results from the CBI Industrial Trends Survey make for very interesting reading and the uptick in demand is good news for the manufacturing industry ahead of MACH 2022, especially predictions that investment intentions look positive not just for the current quarter, but for the whole of this year.
The CBI survey, which reflects the MTA’s own data, indicates that plans for spending on plant and machinery over the coming twelve months have improved considerably, with the percentage balance (+26) standing at its highest level since April 1988. There have now been four consecutive double-digit positive balances in a row on this question which is exceptionally rare and represents a stronger recovery than was seen after the global financial crisis.
Crucially, the improvement has been seen in some of the most important sectors within the manufacturing industry, such as transport equipment (automotive and aerospace) and metal products sub-sectors.

This bodes well for MACH, which will feature the largest display of new machinery and manufacturing technologies under one roof in the UK this year. Manufacturers looking to invest will have plenty of choice and will find a willing and attentive selection of exhibitors, all eager to help find the right solution.
The timing of MACH 2022 is also significant as it falls right in the middle of the Chancellor’s super deduction investment incentive. Launching on 1st April 2021 and running until 31st March 2023, the scheme means companies investing in qualifying new plant and machinery assets will be able to claim a 130% super-deduction capital allowance on their investment, plus a 50% first-year allowance for qualifying special rate assets.

We know the scheme has been popular – and with good reason as it allows companies to cut their tax bill by up to 25p for every £1 they invest. The incentive scheme’s intention is to jump-start the manufacturing sector as it looks to bounce back quickly from the pandemic-induced recession and the MTA has urged companies planning an investment to do so now to capitalise on the scheme.

For the MTA, the super-deduction scheme is a vindication of a campaign it started in 2020, urging the Chancellor to introduce an economic stimulus that would incentivise manufacturers and help them take advantage of key opportunities such as decarbonisation, high-speed rail and the Tempest UAV programme.

The MTA is not the only body to support the stimulus package. The Office for Budget Responsibility (OBR) has predicted the scheme could encourage manufacturers to bring forward investment plans originally scheduled for much later in the decade, so they can take advantage of current levels of demand.
It also represents a wealth of opportunities for the UK’s engineering supply chain. The ability of supply companies to provide innovative solutions to complex problems is one of the core strengths of the UK’s manufacturing industry. These strengths will be showcased in the new Engineering Supply Chain Show, which is running alongside the main MACH exhibition. The event has been specifically designed to help buyers looking to source precision sub-contracting products and services from UK-based suppliers, many of them experts in their fields. 

The show will act as a shop window for UK manufacturing excellence and will enable buyers to see first-hand the levels of expertise to be found within these small to medium enterprises and highlight how the rest of the world can tap into this unique network to resolve their own challenges.
The impetus we have seen in the manufacturing sector of late is clear evidence of the intention amongst the engineering community to demonstrate its resilience and to show exactly why the confidence surrounding the sector is not misplaced. There is a clear appetite to do business, as well as a desire to restore the manufacturing industries to their rightful place within the UK economy.
For this reason, both MACH 2022 and The Engineering Supply Chain Show are unmissable events for any business planning an investment in new machinery or to source vital supply support.I look forward to seeing you there.

James Selka DL is CEO of MTA, Manufacturing Technologies Association