Survey published by MHA and Lloyds Bank Commercial Banking reveals businesses are optimistic of their future growth prospects, but are cautious of the impact leaving the EU. Tony McDonough reports.

Brexit and the skills gap are the two biggest issues facing manufacturing and engineering firms in Merseyside and the North West, a new study shows.

The survey published by MHA and Lloyds Bank Commercial Banking reveals businesses are optimistic of their future growth prospects, but are cautious of the impact leaving the EU could have on their plans.

Almost 80% of North West businesses questioned are optimistic about their growth prospects in the coming 12 months.

However, a note of realism was struck in relation to concerns over the way negotiations over the country’s exit from the EU will go, with 29% of businesses perceiving this uncertainty to be a barrier to growth.

Another cause for concern was the skills gap. with 60% of businesses hoping to recruit over the next 12 months.

However, the inability to find skilled staff to do the job remains a major problem for 70% of those firms. 

Almost 90% of companies in the region believe that their production costs will rise in 2016/17 due to the increasing cost of raw materials together with higher wages.

As a result, productivity gains are being seen as important in bringing down costs, as 70 % won’t be passing the additional costs onto their customers.

Jenny France, area director for manufacturing at Lloyds Bank Commercial Banking in the North West, said: “While the result of the EU Referendum has left manufacturers with some questions over how they will fulfil their future plans, many in the North West are actively identifying new opportunities with global trade partners to help deliver sustainable growth.”