Manufacturers must summon the true spirit of MACH 2022

THREE MONTHS on from the MTA’s successful MACH 2022 exhibition, the UK’s economic and political landscape has undergone a seismic shift. 

Manufacturers are historically susceptible to economic headwinds and the disruption seen over the past decade has tested their mettle on many occasions and it now appears their resolve is set to be tested even further. Nevertheless, manufacturers are a resilient lot and despite the current challenges, planning for the future now will reap long term rewards.

Riding out challenging trading conditions 

Under the conditions we presently have to endure, many could be forgiven for thinking the picture exceptionally bleak. However, looking back just a few short months to MACH 2022, the levels of optimism I detected walking around the halls of the National Exhibition Centre were completely at odds with the current picture and I choose to believe the spirits of those I spoke to have not evaporated, despite what many analysts are saying.

MACH 2022 showed that many manufacturers were confident enough to plan for the future with strong orders for new machines being taken throughout the five days of the show. Futureproofing a business now is perhaps more important than it has been. Investing in more productive and efficient machinery now will not only insulate businesses from the worst effects of recession but it will ensure that companies are better placed to take advantage of the upswing when growth conditions return.

Incentives to investment remain. The super-deduction scheme introduced by the government to help businesses rebound from the pandemic remains in force and runs until the end of March next year. Many manufacturers looking to purchase new equipment at MACH 2022 did so with the help of the scheme. 

The scheme ensures companies investing in qualifying new plant and machinery assets can claim a 130% super-deduction capital allowance on their plant and machinery investment, plus a 50% first-year allowance for qualifying special rate assets. The scheme will allow companies to cut their tax bill by up to 25p for every £1 they invest.

What the fate of the scheme is remains to be seen. Whether it is extended or replaced by a new incentive will be a matter for the new chancellor of the exchequer, perhaps the new prime minister as well – whoever they may be.

Leading the way on decarbonisation

The MTA has been – and continues to be – a major advocate of the potential of decarbonisation to expand growth opportunities. Harnessing the advantages of digital technology will be key to achieving the targets associated with a net zero economy. 

Achieving net-zero targets will be done by decarbonising processes and products right along the supply chain. This is where manufacturing technologies come in. By harnessing innovative technologies, from 3D Printing to automation, manufacturers will be able to reduce the carbon intensity of the production process and create products that are better for the environment.

The MTA is actively encouraging manufacturers to support the net zero agenda and is willing to collaborate with any businesses and organisations looking to do the same. 

One thing can be sure – the government cannot afford to abandon manufacturers to the worst effects of the current situation. The added value manufacturing delivers to the UK economy cannot be overlooked and traditionally, a healthy manufacturing industry means a healthy economy.

So, as inflationary pressures grow, raw materials continue to be in short supply and energy costs mount, it is worth remembering that the MTA will be there to help in any way it can

James Selka is CEO of the MTA

For more information: 

www.mta.org.uk

Tel: 020 7298 6400