Member Article

NW prospects for new year look positive says EEF

The region’s manufacturing firms can expect an improved outlook in 2014, driven by an increase in investment on growth projects, heightened export sales, particularly to emerging markets and an improvement in the eurozone.

Darrell Matthews, North West region director of the EEF, the manufacturers’ organisation, said the outlook in the New Year painted a more positive picture than 12 months ago, with growth expected in all markets and across all sub-sectors and sizes of companies.

He said improvement was being driven both at home and abroad, with companies expecting their domestic and overseas sales to increase.

“Emerging markets remain critical to boosting export growth with the Middle East seeing the largest increase in prospects although Asia and the United States also remain strong,” said Mr Matthews.

“Sentiment towards the eurozone is also turning positive for the first time in a number of years.

“Whilst growth is expected to be broad based across all sectors companies in the transport sectors are most positive about emerging market demand reflecting the prospects for goods such as luxury vehicles where we are well placed in the north west.

“Civil aircraft also continues to be a strong performer.”

But it is not all positive, said Mr Matthews. He added: “One of the downsides, which has particular relevance in our region is the number of companies reporting ‘insufficient supply chain capacity’ as a risk.

“This reflects the hollowing out of the UK supply base and the need to build it back again, a key factor in encouraging inward investment in sectors such as automotive and aerospace.

“However, overall the picture is the most positive it has been for five years since before the financial crisis and I am very optimistic about the prospects for manufacturing in the region.”

This was posted in Bdaily's Members' News section by Simon Malia .