Rising energy costs biggest fear for UK manufactures
Sharply increasing energy costs are more of a concern to manufacturing businesses than rising wages, according to a new report.
Research from the Institution of Mechanical Engineers released today (May 20) finds 60% of manufacturers say rising power bills are their biggest fear.
This week energy minister, Chris Huhne, announced some of the strongest emission cutting targets in the world for the UK.
However, the plans to cut carbon by 2027 against 1990 levels, while broadly welcomed by business, has concerned many in highly energy intensive industries with the CBI also saying Government 'was taking too long' to sort out energy markets.
The poll of 1000 manufacturers, carried out anonymously by MSS research, also found just over half (52.4%) said the same about increasing cost of supplies and components, while only 35% said rising labour costs were their biggest worry.
Institution of Mechanical Engineers president, John Wood, said: "The UK is showing clear international leadership by moving forward with its transition to a low carbon economy, but this is going to mean higher energy costs for everybody.
"Manufacturers are worried, and Government needs to make sure it doesn't force energy intensive industries out of the UK and into countries with more lax climate change targets, this is of benefit to neither the UK economy nor the environment.
"The Government needs to move forward quickly with its promises to mitigate the effect of ambitious climate change targets on energy intensive industries in the UK."