Express & Star

Manufacturing still forging ahead in the West Midlands

Published
Last updated

Manufacturers in the West Midlands have surpassed order book targets and are forecasting a further increase in output in the fourth quarter of the year.

more

The latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO, reveals that despite a more difficult trading environment overseas business performance in the West Midlands has remained positive.

In line with the UK average, a balance of 10% of manufacturers in the West Midlands have reported an increase in output during the third quarter and a further 29% have seen growth in order books, a significant improvement on the predicted balance of 14% when manufacturers were asked three months ago.

In the fourth quarter output is set to rise for a balance of 21% of firms with orders holding steady for a balance of 19%, indicating positive performances can be expected in 2015. Supporting this level of confidence, regional companies have bolstered recruitment intentions to a balance of +24%, compared to -3% just three months ago.

The one area of caution is in exports resulting in EEF issuing a warning that demand is now more uncertain than for some time. With the Eurozone economy flagging significantly, political risks increasing and a stronger Sterling exchange rate, export orders nationwide are turning negative for the first time since the start of 2013.

Richard Halstead, Midlands region director at EEF, said: "Growth in manufacturing remains positive in the West Midlands, although confidence is understandably starting to return to more moderate and sustainable levels as the pent-up demand which built up during the recession begins to expire.

"However, there are clearly increasing downside risks overseas which could threaten the pattern of growth going forward. In the face of this, while politicians may be focused on next year's election it is critical that efforts over the rest of this parliament remain focused on sustaining growth across manufacturing and the economy."