Partner Article

Output and orders in South East manufacturing industry at 16 year high

Manufacturers in the South East will end the year on a high, with firms reporting output and orders at their highest levels for 16 years, according to the Q4 Manufacturing Outlook survey by EEF, the manufacturers’ organisation, and accountancy and business advisory firm BDO LLP

The survey shows that a balance of 67% of South East manufacturers have seen growth in both order books and output in the final quarter of 2014.

It is only the third and fourth time that orders and output respectively have increased for more than 50% of firms since the survey began in 1998.

One driver of growth is the electronics sector, which has some of the strongest sectoral results and has continued to punch above its weight in the South East.

UK-wide, a buoyant domestic market has helped secure the strongest annual growth rate across the sector this year since 2010.

Jim Davison, South East region director at EEF, says: “2014 has proved to be a strong year for South East manufacturers. As we steam into 2015 it’s going to be a case of ‘steady as she goes’ with firms viewing next year with confidence mixed with a healthy dose of realism.

“There have been some notable areas of strength this year, especially among sectors relying on demand in the home market. The fact companies have continued to recruit throughout the year and have kept investment levels high shows they have a positive view of their prospects ahead.”

Kevin Cook, partner and head of manufacturing at BDO in the South East, says: “Ending on such a high comes as welcome news to our regional economy. Manufacturers are set to start the year with strong order books and output forecasts. Importantly, with capital expenditure soaring to 70%, they seem confident of a future worth investing in.

“Companies still face challenges, especially in overseas markets. Working against the headwinds of poor export markets, the strength and resilience of regional manufacturers has shone through again this year.

“What’s exciting 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 keen to invest, recruit and move into new markets.”

This was posted in Bdaily's Members' News section by Ellen Forster .