Manufacturing sector begins road to recovery

By Tim Aldred

21 Sep 2020

New figures published by Make UK suggest that the north west's manufacturing sector has begun to recover from the coronavirus pandemic, but experts warn a no-deal Brexit would reverse fortunes once more.

A new survey conducted by BDO shows that the balance of orders stands at -29% and output at -6%. While these are still in the negative, they represent a significant improvement over the previous quarter.

Recruitment and investment prospects are both flat, but this again shows improvement over previous findings.

The aerospace and automotive sectors remain badly affected by the coronavirus pandemic, but there has been better news for the pharmaceuticals and chemicals industries.

June Smith, region director for Make UK in the North, said: "Manufacturing has begun to climb away from the abyss that it stared into earlier in the year. But, make no mistake it is going to be a long haul back towards normal trading conditions, with talk of a V shaped recovery nothing more than fanciful.

"Having emerged from three years of political uncertainty at the end of last year, increasing talk of a final ‘no deal’ exit from the EU would be a final nail in the coffin for many companies. If we are to avoid this and, the avalanche of job losses that would follow in already hard hit areas and sectors, it is essential that the first step towards a fuller recovery is provided by a comprehensive trade agreement with the EU."

Graham Ellis, head of manufacturing at BDO in the North West added: "While the manufacturing industry has managed to claw back some lost ground from a dismal Q2, the subdued level of investment intentions across the region is a real cause for concern.

"With a no-deal exit from the EU - and associated logistics, customs and cost implications - looking increasingly likely, British manufacturers will need to step up a gear in order to compete internationally, and this will require significant investment in productivity and digitalisation improvements.

‘No-one is in any doubt about the financial challenges facing manufacturers, but failing to invest now will have serious medium to long term implications. The government must be alive to this risk and provide the support required to help UK manufacturers through this transition period and beyond. Other countries - perhaps in particular Germany - do provide good examples of consistent long term support to their manufacturing sectors. The UK should look to adopt a similar approach."

  • For further Lancashire business news, advice and analysis subscribe to Lancashire Business View or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Tim Aldred

Latest news

1

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps A VR headset helps construction learners explore CAD plans

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps

09 Jul 2025

2

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform Walker Fire

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform

08 Jul 2025

3

10th year of growth for Begbies Traynor Ric Traynor of Begbies Traynor

10th year of growth for Begbies Traynor

08 Jul 2025

4

Iconic Lancaster Inn gets £600K makeover New bar at Toll House Inn at Lancaster

Iconic Lancaster Inn gets £600K makeover

08 Jul 2025

5

FWP completes life-changing youth support project Boat House Youth Centre

FWP completes life-changing youth support project

08 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin