Manufacturing 2015: The lifeblood of the region

THE manufacturing sector has undergone a rollercoaster-ride over the past six years and for many firms the turbulence is still being felt.

Yet for others, the recession has proved to be the springboard for major expansion, fuelled by a strong demand from abroad for British-made goods.

Manufacturing has always been critical to the North West economy and the region is the powerhouse of the UK’s manufacturing sector, employing some 315,000 people in the region and accounting for 14.2% of UK manufacturing output.

Rob Elvin, managing partner of Squire Patton Boggs’ Manchester office who specialises in the manufacturing sector, regards it s the “lifeblood” pumping through the veins of the North West’s prosperity.

“This region’s manufacturing heritage is the linchpin of our ongoing success on many different levels,” he explains.

“For a start, there are some outstanding manufacturers based in this region – and while many of these have been founded comparatively recently, others can trace their pedigree back generations.

 “And our manufacturing heritage counts for a lot when it comes to raising our profile both nationally and internationally and attracting non-UK investment into this region.”

Manufacturing growth is being driven by a range of sectors, from food and drink to healthcare, chemicals and pharmaceuticals, as well as aerospace and automotive.

Exports, particularly to emerging economies in the Far East and Middle East, are helping to drive demand.

Elvin points to the ongoing success and growth of the £800m Airport City Manchester development – which has received major funding from Chinese investors – as evidence of how the success of manufacturing in the North West continues to manifest itself.

Currently taking shape at the side of Manchester Airport, this development aims to enhance and stimulate the North West’s economy by creating world-class advanced manufacturing and logistics premises.

Our survey asked manufacturers for their thoughts on the EU refurendum, skills, government support, R&D, infrastructure, supply chain and to give predictions about production levels over the course of the year.

The findings, along with in-depth features, case studies and a round table discussion all form part of the North West supplement, which can be downloaded HERE . The Yorkshire supplement can be downloaded HERE and the West Midlands edition HERE .

There are also the challenges inherent to the industry such as access to growth capital and skills shortages which affect firms wherever they are based.

The same can be said about the looming issue of the UK’s membership of the European Union and the impending referendum. For many manufacturers this is an unwanted distraction and most are of the opinion that the vote should be brought forward and dealt with a quickly as possible rather than having it meander on for another two years.