New research from Subcon shows that nearly 40% of manufacturing companies in the engineering sector plan to increase the amount of work they subcontract next year.
The research revealed that 2/3 of the businesses surveyed used subcontractors in the past year.
The main drivers for outsourcing production were lack of in-house capacity and a desire amongst manufacturers and engineering businesses to focus on core competencies.
Of those engineering and manufacturing businesses that do use subcontractors 53% outsource up to 20% of their requirements, with more than a third outsourcing work with £10,000-£100,000.
The top 25% of outsourcers place business with £100,000 to £1m a year with subcontractors.
“One of the healthiest indicators is that looking to the future, 30 per cent of respondents expect to appoint new subcontractors in the next 12 months,” said Gordon Kirk, event director, Subcon. “However, the spectre of Brexit uncertainty also looms large over these decisions and more than 4 in 10 (42 per cent) are unsure about bringing new subcontractors on board.”