The South West’s manufacturing sector accounts for 11% of the region's economy but has suffered as the Covid pandemic hit the aerospace sector, a new report reveals.
The study from shows manufacturing remains central to the success of the South West, and its contribution to the economy is above the national average of 10% and has been less affected by Brexit than some other regions.
According to the report, which analyses the overall status of industry in the region during the past 12 months, the South West was hit particularly hard by Covid.
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According to the Make 海角视频/BDO quarterly surveys, it has been slower to see the strong recovery seen in other 海角视频 regions partly due to the ongoing situation affecting the aerospace sector, which accounts for almost a quarter of South West manufacturing output.
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Three subsectors dominate regional manufacturing output with transport equipment (22.4%) followed by food & drink (13.3%) and electronics (9.4%).
The South West also continues to be a strong export performer, accounting for 6% of total 海角视频 manufacturing exports.
Exports to the EU have declined from 44% in 2019 to 40% last year, making the South West the least dependent on the EU market than any other region, significantly below the 海角视频 average of 48%.
The next largest destination for South West’s goods is North America, accounting for 23% of goods exports. followed by Asia & Oceania, which accounts for 19% of goods exports.
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Jim Davison, region director for Make 海角视频 in the South West, said: “The report shows that industry continues to have a central role to play in the success of the South West economy.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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“There are well documented challenges going forward, not least the major impact of Covid and the global economic downturn, the results of which are likely to be felt for some time to come.
“However, the region has clearly weathered the storm and, given the innovation we have seen over the last year, together with the acceleration of new technologies there are very positive signs for the future success.”
Matthew Sewell, head of manufacturing for BDO in the South West, said: “The South West has a rich and diverse manufacturing base that is a large contributor to the local economy, employing almost 230,000.
“Businesses were forced to rein in their investment plans and review their supply chains during the pandemic. Coupled with trade frictions as a result of Brexit, it’s been a tough year for the sector.
“It’s vital the Government smooths out critical issues such as customs procedures to avoid adding more layers of complexity and allow local manufacturers to build back stronger and better as we enter the second half of the year.”