Member Article

North East manufacturers report record exports

North East firms provided the best possible start to Export Week, with manufacturers reporting the most positive set of overseas sales and orders figures ever recorded by the region’s largest business survey.

Business optimism across the North East continues to rise as firms delivered another boost for the regional economy at the start of 2014, with firms reporting an upsurge in trade with foreign markets.

The North East Chamber of Commerce’s Quarterly Economic Survey, produced in partnership with Barclays, reveals that orders, sales and exports have risen to unprecedented levels for the QES and that firms remain focused on recruitment and capital investment.

Having charted slow but steady growth across most indicators throughout 2013, last Quarter returned the best set of results since 2003, and although these high levels could not be matched in the first Quarter of 2014, today’s figures demonstrate that confidence levels remain incredibly high.

The QES is a trends survey that shows the health and direction of the North East economy. Measured across 11 separate indicators, any score above zero indicates trading conditions are improving.

Published today, the QES shows confidence emanating from the manufacturing sector with all measures positive and future expectations looking strong. In particular both export sales and orders, added to future profitability are all looking positive within the sector, which bodes well for further progress in 2014.

Across all indicators, year-on-year scores are well into healthy territory and while the performance from the final quarter of 2013 was always going to be difficult to maintain, there is no doubt this represents an excellent quarter for the region’s businesses.

NECC policy and research manager, Mark Stephenson, said: “It is always good to start the year on a positive note and these export figures are particularly good news at the start of Export Week. To achieve the best ever figures for export sales and orders for manufacturing companies is a real cause for celebration.

“2013 provided the foundations for economic growth and the last two quarters prove that business remains at the forefront of the recovery.

“Taken against last year’s figures, expectations are markedly stronger. Future workforce intentions are a real stand-out and have grown on the last quarter. Businesses are looking to hire and the region is very much open for business.

“The dip in some of the key indicators compared to the previous quarter was perhaps to be expected owing to the particularly strong feedback that was received last time. Placing these into the context of the annual comparison illustrates that underlying growth is still very strong and that, looking back 12 months, North East businesses have come a long way.”

Brian Foreman, head of North East Mid-Corporate Banking Team for Barclays, said: “While confidence has been evenly spread across sectors in recent quarters, the strength of positivity from the manufacturing sector this year is very noticeable and definitely a stand out factor, while the service sector also remains buoyant.

“In 2013, we forecast strong growth for export markets and indicators suggest that this is the case. With economies continuing to recover, this will hopefully continue to be a positive feature in 2014. Additionally, recent labour market figures from the UK have been encouraging, while a dip in inflation domestically is also helping foster a pro-growth climate.”

Darlington-based SOLO TI is a family run business and world leaders in the design, development and manufacture of thermal imaging, bringing them to the forefront when it comes to firefighting, search and rescue and surveillance operations.

Managing director, Victoria McLaren, said: “We have between us over 30 years’ experience in the design and manufacture of Thermal Imaging Cameras. We supply to all major Cruise liners Carnival Cruise, P&O RCCL, Cunard, Land based fire teams around the world and search and rescue teams and in 2013 launched an arm of the business for preventative maintenance of buildings.

“It’s fair to say that 2102 was a slow year for us but things have improved significantly and we have seen real growth across our cruise market over the last 12 months, along with the Middle East, which bodes well for our future.”

This was posted in Bdaily's Members' News section by Tom Keighley .