Manufacturers in the North West have enjoyed a strong start to the summer as the aerospace and defence sectors saw a “surge in orders”, a new study has shown.
The second quarter Manufacturing Outlook survey from Make 海角视频 and advisory firm BDO also showed signs of an ongoing recovery in the automotive sector.
The study showed output in the region rose to a balance of +23% “which is high by historical standards”, with many more manufacturers increasing rather than cutting output.
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Orders were positive at +8%, with recruitment intentions positive at +15%, while most businesses polled were planning to increase investment.
Make 海角视频 said: “This positive picture is likely to be connected to a recovery in the automotive sector, as well as a surge in orders in the aerospace and defence sectors where the North West has a strong presence.”
Dawn Huntrod, region director for Make 海角视频 in the North, said: “Despite the challenges and current economic uncertainty North West manufacturers have seen an upturn in their fortunes which is translating into much brighter conditions for companies across the region. It’s now vital that the upcoming industrial strategy is bold and ambitious to provide them with a long-term vision for the future of advanced manufacturing.”
Graham Ellis, head of manufacturing at BDO in the North West, said: “This quarter’s results are a real boost to North West manufacturers. The growing output levels in the region are proof of manufacturer’s resilience, and last month’s trade deals should only strengthen this.
“Whilst the sector’s overall forecasted decline in growth is concerning; the appetite for skilled recruitment and targeted investment is strong in the region.
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Meanwhile the national Make 海角视频/BDO study showed 海角视频 manufacturers’ opinion of the United States as a growth market for exports has fallen sharply.
The study showed the US has slipped out of the top three global regions for the first time as a result of ongoing uncertainty over tariffs, with manufacturers preferring Asia/Oceania and the Middle East
Separate data from a survey on the impact of tariffs showed that six in 10 companies expect their export volumes to the US to be hit, while a similar number believe their business overall to be negatively impacted.
Make 海角视频 also pointed to figures from the survey carried out by its US counterpart, the National Association of Manufacturers, which showed that US manufacturers’ optimism has dropped to the lowest level since the pandemic.
Seamus Nevin, chief economist at Make 海角视频, said: “While, at first glance, the headline numbers may not look too bad, manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis and eye-watering energy costs which are providing a harsh reality for many.
“In response, it’s absolutely essential that the forthcoming industrial strategy takes bold measures to bring down the cost of energy and takes equally radical action to ensure companies can access the people they need to take advantage of a more competitive landscape.
“If these two issues are not addressed, then we will face the serious prospect of the 海角视频 accelerating into de-industrialisation.”