Prospects improving for South West manufacturing (October 2011)

‘Encouraging’ manufacturing outlook

South West manufacturers are showing 'encouraging signs' of growth, with Devon businesses anticipating the highest proportion of sales increases over the coming six months.

The findings are revealed in the latest Manufacturing Barometer survey by the Manufacturing Advisory Service in the South West (MAS-SW).

Almost two-thirds of respondents reported increased sales in the six months to September. While overall, the number of those anticipating sales growth fell, 30 per cent of those in Devon expect to see an increase in sales between now and April. Nearly half of respondents expect to increase their investment in technology, a rise from 34 per cent in the previous quarter's survey.

MAS-SW said that the region's outlook for employment over the next six months is also 'particularly positive' against the national outlook, with 39 per cent of respondents expecting to increase staff numbers. More than half also expect their headcount to remain the same, meaning that overall, 90 per cent expect to increase their workforce or keep it at the same level.

The statistics contrast with figures published in the British Chambers of Commerce's national Quarterly Economic Survey earlier this month, which described Q3 results as "disappointing and worrying" with declines across the manufacturing and service sectors and a slowdown in exports.

MAS-SW managing director Simon Howes said: "While economic conditions remain challenging, it is encouraging to see growth over the last six months in the South West .

"Manufacturers are understandably cautious about their prospects but there are genuine reasons to be confident and bullish about the future.".