North West manufacturers see strong end to year

Darrell Matthews, EEF North West Region Director

North West manufacturers are continuing to see strong conditions with increasing confidence being reflected in recruitment and investment intentions according to a major survey published today by EEF, the manufacturers’ organisation and business advisers and accountancy firm BDO.

According to the survey, manufacturing output and orders remained strong in the final quarter of the year with positive balances of +19% for both. Demand across the region continues to be driven by the continued strength of the aerospace and automotive industries which is feeding demand down through the supply chain across the Region.

This is resulting in strong demand for skilled people with recruitment intention balance of + 42% for the last three months the second highest across UK regions. Looking forward employment intentions have dropped but remain strong by historical standards at 21%.

Looking forward, EEF is forecasting that this picture will continue into 2014 with the sector growing by 2.7% in 2014 compared to 2.4% for the economy overall. The improved performance during 2013 has also resulted in EEF revising its forecasts for this year, showing manufacturing contracting by just 0.1% and the economy growing overall by 1.4%

Commenting, 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 said: “Continued strong demand within the UK domestic market is very encouraging and this does suggest that a sustainable manufacturing recovery has gained a foothold in this country. However, international markets hold the key to a fully-fledged and meaningful improvement for in UK manufacturing 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 once it starts.”