Manufacturers bullish on growth outlook

THE region’s manufacturing sector is continuing to feel confident with orders and investment plans on the up.

This is according to the quarterly Manufacturing Outlook survey by EEF, the manufacturers’ organisation, and accountants BDO.
 
The data shows that  manufacturers’ strong start in the first three months of 2014 was sustained in the second quarter.  
 
Output, orders and employment are all up on balance, with the North West only pipped to the post by Yorkshire and Humber region for new orders. However, this region led the way on investment intentions, outpacing every other part of the country with, on balance, 57% of manufacturers planning to invest during the year ahead.
 
In terms of prospects for the remainder of the year, there are more positives on the horizon. On balance, 55% expect to increase output, 39% anticipate a boost in orders and 37% intend to take on staff.

The one area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of North West manufacturers confident of achieving export growth in the third quarter of the year.
 
The strong results for the region mirror the national picture and EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year
 
Darrell Matthews, North West director at EEF, said:”There is a palpable sense of mounting confidence amongst manufacturers here in the North West and this set of results tells us that it is fully justified.

“The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession and a further boost to the local economy and the job market. Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK.”
 
Philip Storer, partner at BDO in the North West, added: “Government manufacturing policy is clearly paying dividends and is creating an environment in which North West manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital.

“This is a very positive indicator for the rest of the year.  What is now needed is for this success to be replicated abroad. We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe.”