New study from the manufacturers’ organisation, EEF, and banking giant Santander, shows manufacturing accounts for almost 16% of the North West’s total output. Tony McDonough reports.

Merseyside and the North West remains the “manufacturing powerhouse” of the North West contributing £23.7bn to the output of the regional economy.

Latest data from the manufacturers’ organisation, EEF, and banking giant Santander, shows manufacturing accounts for almost 16% of the North West’s total output.

This performance was driven by strengths in the automotive, pharmaceuticals, aerospace, and food & drink sectors where the North West has a strong concentration.

The data also shows that manufacturing employs almost 350,000 highly skilled people across the region, almost 10% of total employment.

Here in the Liverpool city region companies such as Jaguar Land Rover, which employs 4,500 at Halewood, and Vauxhall, with a further 2,000 workers at Ellesmere Port, are leading the way.

Overall the data shows that Britain is now the ninth largest industrial nation with an annual output worth more than £190bn.

This accounts for some 10% of Gross Value Added for the UK economy, while manufacturing accounts for 14% of business investment and 68% of business research and development.

This positive picture is reflected in data on employment and earnings where, according to the OECD, UK manufacturers have outperformed any country except the US for job creation since 2010, while since 2013 average earnings have risen by 3%, twice the rate of the economy overall.

Manufacturing also offers high value, well-paid jobs, with average earnings of £31,489 per year compared to £27,607 for the whole economy.

Steve Warren, region director of EEF in the North West, said: “Given the importance of manufacturing to the North West economy it’s vital that we educate all stakeholders about its real value and contribution to the growth across the region.

“This is especially important in a post-Brexit world where we have to look at possibly all new avenues of generating growth and investment.”