South West Manufacturers Defy Gloom! (September 2011)

South West Manufacturers Defy Gloom! (September 2011)

The following article was recently circulated by Insider Media Limited who reported on a new EEF/BDO Manufacturing Outlook survey which makes excellent reading from a westcountry perspective as far as the manufacturing sector in this part of the U.K. is concerned and certainly reflects our own recent experience and findings.

Roger Mundy, Beardsley Theobalds

Manufacturers in the South West are maintaining healthy growth despite the uncertain economic outlook, according to a new report.

The EEF/BDO Manufacturing Outlook survey has revealed that 45 per cent think that output is higher and 41 per cent said there had been an increase in total new orders, with all sectors reporting positive activity in the last three months.

However, as the economic outlook has become more uncertain, a difference in views of recent trading conditions and future expectations has opened up, according to the survey.

A small number of sectors, including metals and electronics, had demonstrated weaker orders intake over the past three months, with corresponding concerns about output expansion evident in the next three months, it added.

Paul Knight, the EEF South West region director, said: "Manufacturers had bucked other recent negative indicators, holding out hope that the recovery has not yet run out of steam.

"However, conditions have moved on from the broad-based recovery seen over the past 18 months to a more mixed picture – for example the percentage of South West companies reporting growing order books in the last three months fell from 61 per cent to 41 per cent.

"The growing challenges in the global economic environment, in particular, are casting a shadow over expectations and seem to be giving some companies pause for thought when it comes to investing and recruiting. But there is cautious optimism that growth will continue through the rest of the year".