Member Article

Manufacturers optimistic despite uncertain future

Strong exports to the Far and Middle East have left the region’s manufacturers predicting a positive output balance in the next three months, despite an ongoing slump in EU trading and weak cash flow and investment levels.

That is according to manufacturing body EEF’s first quarter 2011 Outlook Survey, which found that exports beyond Europe are driving the region’s recovery while recruitment trends have remained positive – although there is a reluctance to take on permanent staff.

The EEF also said the North East had enjoyed another broad based period of recovery with an output balance in line with the rest of the UK as oil and vehicle-related exports held up well.

Tony Sarginson of EEF in the North East said: “Manufacturers in the North East have picked up this year where they left off in 2010, with output growing and little sign that the export led recovery is about to dry up in the near term.

“However, the picture for the rest of 2011 still remains uncertain as a number of economic headwinds persist and the potential impact of new geopolitical tensions adds another layer of uncertainty to economic forecasts.

“Companies in the North East continue to be cautious about committing to large, game-changing investments, which will ultimately support the right type of growth across the UK economy. Government must recognise that an ongoing recovery cannot now be taken for granted and use every club in the bag to sweep away barriers to growth in the Budget.”

EEF published the outlook report in partnership with accountants and business advisers BDO LLP.

This was posted in Bdaily's Members' News section by Ruth Mitchell .