Domestic and overseas demand fuels optimism among North West manufacturers
A study by EEF, he manufacturers’ organisation and accountancy and business advisory firm BDO, reveals the region’s ‘makers’ are willing to invest in their businesses and hire more staff. Tony McDonough reports
Manufacturers in the North West are upbeat for prospects in 2018 despite the ongoing uncertainty around Brexit, a new report shows.
A study by EEF, he manufacturers’ organisation and accountancy and business advisory firm BDO, reveals the region’s ‘makers’ are seeing increased demand in the UK, Europe and beyond.
This has has led EEF to upgrade growth forecasts for manufacturing for this year and next, meaning the sector will again outperform the economy overall in 2018.
According to the survey, both output and total orders remained in very positive territory at +42% and +47% respectively (total orders a historic high for the North West) with export orders in particular very strong, surging to the joint highest of any UK region of +47%.
This positive picture is reflected in healthy recruitment intentions by North West companies which reached a historic high of +51%, the highest of any UK region. Investment intentions also remained high continuing the recent momentum.
As a result of the strong performance by manufacturing through 2017 and the positive outlook for 2018 EEF has upgraded its forecasts for the sector to +2.0% from 1.4% previously.
This is faster than the UK economy overall where EEF is forecasting growth of 1.5% in 2018. Next year we see growth slower growth across the economy and manufacturing with expansion of 1.3% and 0.6% respectively.
Richard Halstead, director of member engagement for EEF in the North, said: “Manufacturing activity stepped up a gear through 2017 providing industry with some decent momentum coming into this year.
“The importance of a buoyant global economy to export-focused manufacturing sectors is again reinforced, with growing overseas demand encouraging international manufacturers to ramp up their investment which in turn is spurring particularly strong activity in UK capital goods sectors.”