Investment decision making in UK manufacturing industry

Investment in manufacturing is important to sustained UK economic recovery, quality of life and national economic standing. Considers results from a survey of UK manufacturers on influences on capital investment, the appraisal methods used and the impact of recent changes, particularly in interest rates. Compares results with the Bank of England and CBI surveys and studies of appraisal methodology. Outcomes include the finding that UK interest rates are not seen by most manufacturers as an important influence on their investment decisions. Examines the effects of factors such as inflation, taxation and the UK and EU economic outlooks. Responses confirm near universal usage of the payback method in financial appraisals and widespread use of multiple criteria. Looks at UK investment in advanced manufacturing technology (AMT) and what allowances are made for intangible benefits. Considers a number of aspects of short‐ termism and concludes that the Cadbury recommendations are unlikely to have a major impact.