Manufacturing growth set for surge

More recruitment and investment are reflecting increasing confidence as manufacturing firms in the region continue to see strong conditions, according to a major survey from manufacturers' organisation EEF and accountants BDO.

Output and orders remained strong over the last three months, with demand driven by the continued strength of the aerospace and automotive industries which is feeding demand down through the supply chain across the West Midlands. This is also resulting in strong demand for skilled people.

EEF Midland Region director Richard Halstead said: "Over the course of the year we have seen a definite turnaround in prospects for manufacturing and this looks set to continue.

"This increased confidence is evident in companies looking to increase their headcount and, most importantly for balanced growth, step up their investment. However, uncertainties in the global economy remain and a sustained recovery is not secure. As a result, growth must remain a priority for government over the remainder of this parliament, starting with the Autumn Statement this week."

Firms expect business to remain good and many are planning increased investment.

Meanwhile the report's findings were supported by the closely-watched CIPS/Market purchasing managers index (PMI) survey, which saw manufacturing return to form in November as the sector steamed ahead with the fastest growth in nearly three years, following two months in which the pace of expansion slowed.

The survey's results were the best since February 2011 and are likely to ease fears that the UK's recovery is too dependent on consumer domestic spending driven by a surging property market.

The growth included a strong level of export orders - with new work from Asia, the US, Germany, France, Ireland, Belgium and the Middle East - but the domestic market remained the prime factor in order growth.