North East manufacturing sector predicts pandemic recovery within 2 years

A new survey has shown that the North East manufacturing sector is seeing an increase in production as the year ends.

The MHA Association has released the results of a Temperature Check survey of manufacturers across a broad spread of businesses in the region.

Companies responding to the survey included those across the aerospace, fast-moving consumer goods, oil and gas engineering and pharmaceutical sectors.

The survey shows companies believe it will take between six and 24 months to recover to pre-Covid levels.

Alastair Wilson, tax partner at MHA Tait Walker, commented: “Manufacturing is one of the mainstays of the economy in the North East and so the feedback received from businesses provides a good insight as to how the economy is feeling and responding to the challenges that the coronavirus pandemic has created.

“We have in the region seen manufacturers move to support manufacturing for the NHS (for example supporting the ventilator projects) that might previously have been manufacturing for the automotive sector.

“Equally we have seen businesses capitalise on new opportunities.

“For example, one of the businesses that we act for has been very successful in making perspex screens for a broad range of customers and that was not a significant product for the company prior to coronavirus.”

“The North East region is a big net exporter, in particular of motor vehicles, and the impact of coronavirus and then the risk of tariffs on cars under Brexit have meant that the automotive sector has had a particularly challenging year ahead.

“A trade deal with the EU would be the best outcome now as it would make it more likely that there will be less ongoing disruption for this vital sector in 2021.”

Arthur Hodgson of The Advanced Manufacturing Forum, commented: “It is testament to the ability of the region’s manufacturers and survey respondents, many of whom are members of the Advanced Manufacturing Forum, that many have recovered to near pre-coronavirus levels or have adapted to provide new products and have turned the challenge into an opportunity.”

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