Intelligence Briefing 21st July 2016

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In this issue: Weekly Focus – EU Referendum Survey | EEF discusses devolution with Graham Brady MP | EEF discusses industrial strategy with Ruth Smeeth MP | All Party Parliamentary Group for Energy Intensive Industries meeting on the EU ETS | EEF Future Manufacturing Awards | EEF Manufacturing Photography Competition | In Parliament | In the media | Week in Review | Blogs from this week

Weekly Focus – EU Referendum Survey

Following the referendum, EEF conducted a survey of manufacturers to assess the impact of the outcome and to understand how the sector views the challenges and opportunities emerging from the decision to leave the EU. We reported some of the findings earlier this week.

Our survey found that there hadn't been much immediate impact on trading conditions across the sector with most respondents reporting that they had seen no change in orders or enquiries or it was too soon to say. However, there were concerns that weakening economic activity in the UK and a potential pause in Europe's recovery would have a negative impact on orders over the next six months. Although, this could be offset, to a degree, by continued growth in sales to non-EU markets.

Nevertheless, confidence about business conditions over the next 12 months has taken a knock compared with our 2016q2 Manufacturing Outlook survey. This appears to be driven by worries about a downturn in demand, elevated political uncertainty and Sterling volatility. While we've seen some swings in the exchange rate in recent weeks, the depreciation following the referendum is still seen as an opportunity for exporters.

As a consequence of these factors, come companies are putting in place plans to review future investment and recruitment and we see some downside risks to investment growth in the coming year following the referendum. We will continue to monitor trading conditions and companies' plans for future investment and recruitment through our quarterly Manufacturing Outlook survey.

You can access the EU referendum report here.

For more information contact Lee Hopley, Chief Economist.

EEF discusses devolution with Graham Brady MP

EEF met with Graham Brady MP, Chair of the 1922 committee, to discuss a range of issues related to devolution, a topic he is very interested in, including the future of local government reorganisation and ensuring infrastructure is the focus for devolution.

We covered the post-EU Referendum business environment and shared the results of our latest survey of members. We also discussed the role of industrial strategy and the importance of ensuring innovation assets such as Catapults remain at the cutting edge to support manufacturing growth.

Later in the year we’ll be conducting a survey examining manufacturer’s priorities around devolution, following on from our report last year Devolution in England: the business plan.

For more information contact Chris Richards, Senior Business Environment Policy Adviser.

EEF discusses industrial strategy with Ruth Smeeth MP

As part of our engagement with backbench MPs, this week EEF met with Ruth Smeeth who is the Labour MP for Stoke-on-Trent North and Kidsgrove. Ruth is interested in developing an industrial strategy for Stoke-on-Trent to address the underinvestment that the city has experienced in past decades and we explained what EEF is seeking from national industrial strategy and our framework for the strategy. We also discussed the key results of EEF’s EU referendum survey and the impact that the referendum result may have on UK manufacturing. EEF will continue to engage with backbench MPs from all parties both at a regional level and in Westminster.

For more information contact Celia Charlwood, Senior Government Affairs Adviser.

All Party Parliamentary Group for Energy Intensive Industries meeting on the EU ETS

This week EEF attended a meeting of the APPG for EII, chaired by Alex Cunningham MP on the proposed post-2020 reforms of the EU ETS. There were presentations from CF Fertilisers, the British Ceramic Federation and Tarmac, covering a range of issues including the potential impact of both the Commission’s proposal and the UK Government’s proposed tiering of free allocation. Discussion also covered the potential impacts of Brexit on the UK’s longer term participation in the EU ETS and what other possible options could be available to the UK Government if we were to be outside of the single market. All industry representatives stressed the importance of the government continuing to remain an active participant in the post-2020 reform negotiations.

For more information contact Nick Troja, Senior Energy and Environment Policy Adviser.

EEF Future Manufacturing Awards

The EEF Future Manufacturing Awards recognise the outstanding work and dedication of British manufacturers and apprentices. The awards are free, easy to enter and give apprentices, manufacturers and supply chain businesses of all sizes from across the UK a chance to shine.

There are nine award categories in total to go for, including:

  • Environmental Achievement – in partnership with CMR consultancy group
  • Innovation – in partnership with HVM Catapult
  • Health and Safety – in partnership with Howden Group
  • Leadership
  • Business Growth
  • Developing people
  • Partnerships – in partnership with Rolls-Royce
  • Export
  • And of course our popular Apprentice Awards – in partnership with Siemens.

The closing date for entries is 29th July 2016. To enter or to find out more visit:

For more information contact Soraia Silvello, Awards Programme Manager.

EEF Manufacturing Photography Competition

EEF and Canon are coming together for the 7th annual Manufacturing Photography competition which asks budding and experienced photographers to capture the essence of modern manufacturing. Up for grabs is a set of Canon photography equipment.

Photographs can portray any stage of manufacturing - from design, process and technology in action through to the finished product - and can cover traditional or high-tech sectors.

Entries will be shortlisted by a panel of photography and industry experts, with winners announced in December.

The competition closes on Friday 30th September. For more information and to enter, visit

For more information contact Alex Block, External Affairs Executive.

In Parliament

In a committee to discuss the Draft Carbon Budget Order 2016, the new Minister for Business, Energy and Industrial Strategy Jesse Norman mentioned that EEF has welcomed the certainty provided by the carbon budget level. In a Lords Committee discussing the same order the Lords BEIS Minister Baroness Neville-Rolfe also welcomed this.

For more information contact Celia Charlwood, Government Affairs Advisor.

In the media

EEF’s EU referendum survey, examining manufacturers’ responses to the vote to leave the EU, was covered extensively in City AM, The Express, The Guardian, The Daily Mail, Reuters and The Times (link unavailable).

Elsewhere, EEF CEO Terry Scuoler was featured in The FT (link unavailable) calling for more contact between businesses and government in the aftermath of the vote to leave the EU. UK Steel signalled its encouragement that The Prime Minister is showing early signs support for the Steel Sector in The Telegraph and City AM.

For more information contact Alex Block, External Affairs Executive

Week in review


CPI inflation edged higher in June to 0.5% from 0.3% in May. A rise in airfares and petrol prices contributed to the increase. Following Sterling’s sharp fall in June, there will be some modest upward pressure on inflation from higher import prices. We now expect CPI to average 0.7% in 2016 and 1.9% in 2017.


Unemployment on the ILO measure fell by 54,000 in the three months to May, indicating a resilient labour market ahead of the referendum. The fall took the unemployment rate down to 4.9%, the lowest since 2005.

Blogs from this week

18 Jul 2016
A round-up of the week's data releases by Zach Witton

19 Jul 2016
The headlines from EEF's July 2016 EU Referendum Survey by Lee Hopley

20 Jul 2016
A new Skills Minister is in place so what will manufacturers want from him? by Tim Thomas

20 Jul 2016
The manufacturing outlook has deteriorated by Zach Witton

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