Rise in manufacturers taking on new workers

The number of West Midland manufacturers recruiting workers has risen amid a strong start to the year for the industry, it was revealed today.

A quarter of the region's 419 manufacturing companies surveyed have taken on new employees in the first three months of the year. And nearly a third of businesses have further recruitment plans for the next quarter.

Short-term confidence has returned to the market with firms optimistic over orders and output over the forthcoming months.

Mechanical equipment and metal products did well. But there was a dip in output and orders across motor vehicles, according to a report by the Engineering Employers' Federation and accountants BDO LLP.

For the second consecutive quarter the region's output remained below that of the North West but it stepped ahead of Yorkshire and Humber and the North East.

Tom Lawton, Birmingham based partner and head of manufacturing at BDO LLP, said: "Manufacturers seem to be reassured by strengthening output and forward order books, and are looking forward to the next three months with more confidence.

"The shock from the eurozone delivered at the end of last year seems to be subsiding and domestic demand has caught up with exports – the main driver of growth in last quarter – to provide a more secure foundation on which to establish a sustained period of steady, albeit slow, growth.

"Economic indicators are improving and positive industry news this week will certainly help crystallise this optimism. It is important to the overall recovery of manufacturing and the UK economy for the government to recognise the opportunity that improving sentiment in the sector presents and to do everything it can to support and nurture this growth."

Richard Halstead, regional director at EEF, said: "The confidence shown in our survey again demonstrates the resilience of manufacturing in the face of a changing global outlook."