Manufacturing and engineering sectors predict growth

A new survey of North West manufacturing and engineering businesses has shown that three-quarters predict their turnover will grow over the next 12 months.

Compiled by MHA Moore and Smalley and Lloyds Banking Group, the annual MHA survey also shows that 61 per cent plan to increase staff numbers, and 68 per cent will take on apprentices or trainees. This sits above national averages of 57 per cent and 59 per cent.

The Eurozone remains the most popular destination for exporters, followed by Asia (exclusing China) and the rest of Europe.

Ninety-three per cent of firms intend to invest in research and development over the next year.

The main challenges are raising capital investment required to adopt automation, as well as increased production costs from raw materials and wage growth. Brexit did not rank highly as a concern.

Ginni Cooper, head of the manufacturing team at MHA Moore and Smalley, said: “We’re very encouraged by the results of this year’s survey, with a quarter of North West respondents predicting growth of 10 per cent or more and 43 per cent predicting 5 to 10 per cent growth within the next year."

Dave Atkinson, head of UK manufacturing for Lloyds Bank, added: “It is clear that British manufacturers need further support to explore new opportunities in overseas markets. While the devaluation of sterling has accelerated export growth, businesses are still looking for support to source those new opportunities." The full study can be found here.