LONDON, (Reuters) – British manufacturing companies are positive that productivity and business conditions will improve in 2018, despite the fact that most say they’ve been hit by Brexit and higher costs. According to a Monday industry survey.

According to Make UK, a trade body and PwC accountants, 73% of the manufacturers believe that conditions will improve in their sector and 78% see a slight increase in productivity by 2022.

Two thirds of businesses said Brexit has hampered them in the two-years since Britain left EU. Keeping staff, rising inflation costs and retaining employees also present challenges.

Stephen Phipson is the chief executive at Make UK. He stated that “it’s testament the strength of manufacturers they have emerged from turbulence the last few years in such an a relatively strong place.”

“To build upon that, we need to now see a government fully engaged to supporting this sector,” he stated. He also said the government should have a longer-term view for the economy.

In the face of supply chain disruptions caused by Brexit and last year’s pandemic, over a third said they plan to reshore operations in the next 2 years. Just half of the respondents stated that they do not intend to transfer any production back to Britain.

A similar survey found that British manufacturers raised prices at their highest rate in over 20 years. This was because the Bank of England raised its interest rates to 0.2% to counter inflationary pressure.

Official data revealed that October saw British manufacturing output remain at more than 2% above pre-pandemic levels.

Make UK predicts that the manufacturing industry will grow by 6.9% between 2021 and 2022, with a growth rate of 3.3% in 2022.

This survey included 228 businesses and was done between Nov. 8-29.