Region’s manufacturers continue to outperform
THE NORTH West’s manufacturers had higher levels of order books than any other UK region in the last quarter, according to the latest Manufacturing Outlook survey.
The survey, conducted by the Engineering Employers’ Federation (EEF) in conjunction with accountancy firm BDO, showed that growth was underpinned by demand from overseas markets, and particularly by exports to emerging economies.
It also said that employers were beginning to recruit and make new investments, but were nervous about the prospects for long term investment.
The survey also showed that there had been a softening in optimism among manufacturers for 2011, particularly about the prospects for domestic orders. However, expectations still remain at above average level and the EEF is predicting that manufacturing will continue to outperform the rest of the economy in 2011.
EEF North West director David Ost said: “North West manufacturers are ending the year on a high and should enter 2011 on a strong footing. If this continues, we should see exports and investment delivering better balanced growth across the economy.
“A number of risks remain firmly on companies’ radar, including the potential for the upturn to lose momentum in the UK’s major markets. But the strong bounce back has also brought challenges, with some manufacturers’ struggling to get the skills they need and facing rising costs.”
Over the last three months, output and new order balances were +47% and +60% respectively. Employment prospects also improved to a balance of +18% and remain positive for the next quarter, the report said.
