Member Article

North West manufacturing firms view 2015 with ‘determination and realism’

While UK manufacturing ends on a high for the year there is still some trepidation for manufacturing figures in the North West.

Manufacturers in the UK look set to end the year solidly, with positive figures on output and orders continuing to feed through to investment and job creation, according to the Q4 Manufacturing Outlook survey by EEF, the manufacturers’ organisation, and accountancy and business advisory firm, BDO LLP.

The sector is on track to achieve 3.5% growth this year, with a forecast of 2% growth for 2015.

However, data for the North West isn’t quite so optimistic.

Last quarter, North West manufacturers saw a lull in their fortunes following six quarters of significant growth.

Q4 figures show that they are starting to pull themselves back up again, but it’s going to take some work.

In Q3, output fell with a balance of 22% of manufacturers in the region seeing a drop.

This quarter, although there was no drop in output, there was no increase either, leaving the balance at 0%.

At the same time, just 4% on balance saw an increase in total orders.

Job prospects remained positive with a net 17% of firms taking on staff in Q4.

However, this is down from 44% of firms taking on staff in Q3.

In Q1 2015, the region’s manufacturers expect to see a small lift in output and a small drop in orders, but for recruitment to remain steady.

The latter indicates that confidence remains fairly high as they head into a new year.

The one area of caution is in exports where geo-political risks, global uncertainty and the weak performance of the Eurozone have contributed to a more cautious outlook.

North West region director at EEF, Darrell Matthews,said: “2014 has proved to be a solid year for North West manufacturers, with the highs thankfully balancing out the lows.

“As we steam into 2015 it’s going to be a case of ‘steady as she goes’ with firms viewing next year with a mixture of grit, determination and realism.

“There have been some notable areas of strength this year, especially among sectors relying on demand in the home market, which has been particularly strong.

“Despite some uncertainty, the fact companies are maintaining their investment and hiring plans shows they have a positive view of their prospects ahead.”

Partner and head of manufacturing at BDO LLP in the North West, Don Bancroft said: “Working against the headwinds of poor export markets, the strength and resilience of sector firms have once again shone through this year.

“What’s exciting, yet equally frustrating, is that manufacturers would have even more growth potential if the right support was in place.

“The Chancellor must do his bit in this week’s Autumn Statement to back businesses looking to invest, recruit and move into new markets.”

This was posted in Bdaily's Members' News section by Sophia Taha .