North East manufacturers have seen one of the best recoveries in output since the pandemic and are leading all but one other English region.
A new study from sector body Make 海角视频 and accountancy and business advisory firm BDO points to the region having seen the second highest increase in output of any English region in the last decade. The research shows North East output since 2013 has grown by 30%, while output in 2023 was 14% above the pre-pandemic levels recorded in 2019.
The Make 海角视频/BDO Annual Regional Manufacturing Outlook report shows three major sectors account for half of North East manufacturing production. The largest sector is the pharmaceuticals sector with almost a quarter (23.8%) of output, followed by transport sector - largely automotive - at 17.7% and then metal products at 10.7%.
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And last year the region accounted for 3% of the 海角视频's total goods exports, with most going to the European Union (58%), followed by the US (14%) and Asia & Oceania (13%).
Dawn Huntrod, region director for Make 海角视频 in the North said: "Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of creating wealth across the 海角视频. The new Government has made a welcome bold statement of its intent to tackle the 海角视频’s anaemic growth at national and regional level.
"It should now back this with a radical, cross government, long-term industrial strategy which has the need to tackle the 海角视频’s skills crisis at its heart. This should be allied with the local growth strategies and priorities of each region, including infrastructure and innovation, together with other measures to ensure the 海角视频 is now fully open for business."
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Steve Talbot, head of manufacturing at BDO in the North East, added: "Over the last few years, manufacturers across the North East region have faced multiple external shocks and changing policy priorities. They have shown great resilience in overcoming these challenges and it’s really encouraging to see the regional growth of the sector over the last year.
"There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy. This could unlock vital investment needed in the North East to continue to bolster manufacturing output and skilled employment opportunities."
The picture of manufacturing follows separate research that suggested a slow down in North East private sector growth in June. The NatWest Growth Tracker - a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – fell from 54.0 in May to 52.0 in June, to signal monthly growth was the softest since March.