Ian McConnell

NEARLY six in ten Scottish manufacturers believe uncertainty over future trading tariffs could be a barrier to growth, as Brexit looms, a survey reveals.

The 57 per cent taking this view in the survey by accountancy firm Henderson Loggie, in conjunction with the MHA network of accountancy firms and Bank of Scotland, is up from 22% in 2017. And 55% of Scottish manufacturers reported having difficulty recruiting employees with the relevant skills.

The survey shows that 36% of manufacturers in Scotland expect their staff numbers to increase over the next 12 months, below the 49% in the UK as a whole making such a projection. And 59% of manufacturers north of the Border remain optimistic about the future growth of their businesses.

Gavin Black, partner and head of manufacturing at Henderson Loggie, believed the survey showed “an element of resilience” among companies in the sector.

He said: “The majority of respondents are forecasting growth in some form in the coming year, which they predict will come from increased demand from customers, expansion of product offerings, new markets overseas and increased productivity.”

Flagging higher raw material costs and the pace of technological change, he added: “There is no doubt that conditions remain challenging.”

He observed recruitment was “a concern”.

Mr Black added: “For some companies this is exacerbated by the uncertainties surrounding Brexit, which could create an even greater skills shortage than already exists.”