West Midlands manufacturers top the UK table for business confidence
MANUFACTURERS in the West Midlands score highest in the UK for business confidence according to a new report launched today by manufacturers’ organisation EEF and law firm DLA Piper.
The report – Regional Manufacturing Outlook – draws upon survey data and the latest ONS figures to provide a longer-term picture of the state of UK manufacturing.
It shows that manufacturers in the West Midlands are in pole position in the business confidence league. The region scores 6.86 out of a possible ten points for confidence, placing it first out of nine regions.
The region also scores highly for exports, making the second biggest contribution to the UK’s total manufactured exports at 12.1%. This means that one in every eight pounds earned from the UK’s manufactured exports is made in the West Midlands.
The EU is the UK’s largest market for manufacturing exports and this is no different in the West Midlands where the EU takes 40% of the region’s goods exports. However, the region’s second biggest market, Asia, accounts for 27% – the highest proportion out of all the UK regions.
At the same time, the West Midlands is the UK’s sixth highest region in terms of manufacturing output. The sector accounts for 13.9% of regional output and contributes more than 10% (10.1%) to the UK’s overall manufacturing output.
Productivity in the region – at 88.2% – is however relatively low compared with other regions.
There is also good news on the employment front. Manufacturers in the West Midlands employ more than one in ten (13%) of the region’s total workforce. Nearly 336,000 people are now employed by manufacturers across the region.
Companies have now reported nine consecutive quarters of output growth and the region has continued its strong run into 2015.
Richard Halstead, Midlands and East region director at EEF, said: “This report shows that West Midlands manufacturers are punching above their weight and putting our region on the map.
“Our region is making the second biggest contribution to the UK’s manufactured exports and this success story enables our ingenuity, creativity and skills to be recognised around the world and particularly in Europe, our biggest export market.
“Manufacturers in the region are feeling more confident than any of their peers. And, with future forecasts looking good for growth, orders and employment, their optimism is well founded and likely to keep them flying high for some time to come.”
Noel Haywood, partner in DLA Piper’s Birmingham office, said: “The success of the West Midlands manufacturing sector and the focus on the sector in this region remain huge positives in the local market.”
