A PwC barometer of 270 local manufacturing entities indicates that only 27 per cent have plans for capital investment in the next six months.

Almost two-thirds of those interviewed have no plans at all and 10 per cent are unsure.

The barometer covers textile, pharmaceutical, food and beverage and printing companies and other entities involved in the processing and manufacture of wood, metals, plastics and electronics.

Differences emerge when analysing the results by employee count and industry, with companies employing over 50 people more likely to invest.

The pharmaceutical industry is the most upbeat, with 86 per cent – generally entities employing over 250 employees – indicating immediate investment plans.

On the other hand, manufacturing concerns involved in wood products and aluminium, which are the smaller-sized entities, hold more conservative investment plans.

The barometer also analysed the extent of investment, with just under a third planning to spend more than €250,000.

While employment prospects are more prevalent in the pharmaceutical and food and beverage industry, with 71 per cent of these industries reporting plans to employ more people in the next 12 months, in aggregate, the barometer reports that only 27 per cent of the local manufacturing industry is considering expanding its workforce during the forthcoming 12 months. The rest are either unsure (15 per cent) or have no plans (58 per cent).

In nearly all industries participating in the barometer, competition tops the concern being faced, with 26 per cent of respondents considering competition as the biggest threat to their business.

Debtors and cash flow problems, at 19 per cent, ranks as the second most common threat. Other concerns are the price of raw materials and the limitations in the supply of labour.

www.pwc.com/mt/barometer