The firm’s poll found that almost half (43%) of outward investors are undeterred by the uncertainty the vote has created, and do not believe that it will make it harder to recruit.

A third of respondents are considering relocating some of their operations out of the UK over the next three years, while 67% have no plans to move.

Karen Briggs, head of Brexit at KPMG, said: ‘Although some are concerned about exchange rates, labour pressures and higher indirect taxation, they are also taking a range of practical measures to prepare. These include partial relocation, supply chain management, increased business development, and new sources of financing.’

If faced with rising costs, the majority of respondents (65%) plan to make up for these by either saving costs elsewhere, or by absorbing them, while 35% expect to pass these on to the customer.

The majority think the key impacts of Brexit will include a rise in operating costs (63%), pressure on operating margins (62%) and a negative impact on the bottom line due to indirect taxation (63%) – including customs duties.

It appears that smaller companies are more likely to be concerned by the impact of indirect taxation than larger organisations, and are also more likely to be preparing for this expected impact. Meanwhile, 39% of mid-sized manufacturers are looking for new sources of financing and investment following Brexit, compared to just 9% who say this from large companies.

In addition, 40% of companies say they’ll be putting more focus into developing business and marketing in the EU in the next three years — a figure that rises to 46% among respondents from smaller companies.

The research also found that UK manufacturing executives want help from government to invest in new technologies and a better educated workforce in order to get the sector firing on all cylinders.

The findings show 70% of UK manufacturers felt financial support from the government is needed to help them increase investment in emerging technologies, including artificial intelligence, advanced robotics and augmented reality.

Access to a better educated workforce came a close second, with 65% of respondents stating that an improvement in the availability of skilled talent could help them increase productivity in their organisations.

Stephen Cooper, UK head of industrial manufacturing at KPMG, said: ‘Clearly there’s an appetite to embrace emerging technologies, as highlighted in the recent industrial strategy green paper. The UK has an opportunity to position itself as a globally attractive and competitive base for advanced manufacturing.

‘At the same time, with the gap between supply and demand of STEM talent in manufacturing set to widen, government, industry and educators will need to act quickly to ensure the manufacturing sector is equipped with the right skills for digitalisation.’

KPMG’s report, Link to Rethink manufacturing: Designing a UK industrial strategy for the age of Industry 4.0 is here.