Bleak outlook for manufacturing as growth slows

THE outlook for manufacturing in the West Midlands remains fragile after latest figures showed output slowing.

The UK’s manufacturing output was 0.3% lower in August than in July. Figures from the Office for National Statistics show the figure was 1.5% higher this time a year ago.

The figures are the weakest since February 2010.

Richard Halstead, Midlands region director of the EEF, said: “Though manufacturing is still well ahead of where it was eighteen months ago, and the performance of individual sectors continues to diverge, positive economic news is getting harder to find.

“Whilst manufacturing should still see modest growth for the rest of this year, the outlook is looking increasingly fragile and no one should take a continued recovery for granted.”

Mr Halstead measures to improve the sustainability of the sector were vital and while the opening of the Government’s new High Value Manufacturing Technology and Innovation Centre was significant, further help was needed.

“With economic headwinds increasing, manufacturers will need to hear more from government soon if they are to make the investment we need to drive our economy forward,” he said.

“Looking forward to the Autumn Statement, it is vital that the government takes the opportunity to set out a coherent strategy and package of measures that will deliver stronger investment, growth and job creation.”

Tim Bradshaw, the CBI’s head of Innovation, Science and Technology, said: “The Government’s progress in rolling out Technology and Innovation Centres (TICs), and in particular the commitment to fund the manufacturing TIC for six years, is good news.
 
“This will secure its future well beyond the current spending review period and should give business the confidence to collaborate with some of our leading manufacturing research centres.
 
“It is vital that TICs work closely with existing research and technology organisations to strengthen our manufacturing competitiveness.”