More positive signs from manufacturers

CONFIDENCE among manufacturers in the region is being reflected in recruitment and investment intentions, according to a new report.

A survey published today by EEF, the manufacturers’ organisation, and accountancy firm BDO, found that manufacturing output and orders remained strong in the final quarter with positive balances of +19% for both.

Demand across the region continues to be driven by the aerospace and automotive industries and this is feeding demand through the supply chain.
 
Demand for skilled workers is up with the survey showing a “recruitment intention” balance of + 42% for the last three months, the second highest score across UK regions. Looking forward, employment intentions have dropped but remain strong by historical standards at 21%.
 
The EEF is forecasting that this picture will continue next year with the sector growing by 2.7% in 2014 compared to 2.4% for the economy overall.

EEF North West Region Director, Darrell Matthews said: “Over the course of the year we have seen a definite turnaround in prospects for manufacturing and this looks set to continue into next year. This increased confidence is evident in companies looking to increase their headcount and, most importantly for balanced growth, step up their investment. However, uncertainties in the global economy remain and a sustained recovery is not secure.

“As a result, growth must remain a priority for government over the remainder of this parliament, starting with the Autumn Statement this week.”  
 
Philip Storer, partner at BDO in the North West, said: “Continued strong demand within the domestic market is very encouraging and this does suggest that a sustainable manufacturing recovery has gained a foothold in the region.

“However, international markets hold the key to a fully-fledged and meaningful improvement and these markets remain frustratingly fragile. We haven’t missed the boat yet, but companies need to stand ready and be supported by an accessible Government-backed export framework in order to take full advantage of the recovery on the continent and beyond.”