Opinion: Stability could drive the North West's manufacturing recovery

Manufacturing figures suggest the sector is growing, but businesses need greater certainty over taxation, skills and industrial policy to sustain investment, argues Ginni Cooper, partner at MHA.

The latest S&P Global UK Manufacturing Purchasing Managers' Index (PMI) has remained above the 50-point growth threshold for the third consecutive month, signalling continued expansion across the sector despite wider economic pressures.

The index recorded 53.7 in April, 53.9 in May and 52.2 in June, indicating manufacturing activity continued to grow throughout the second quarter of the year.

MHA's Manufacturing Report 2026 also found North West manufacturers to be the most optimistic in the UK, with 90 per cent expecting growth of more than three per cent over the next 12 months. That compares with 76 per cent in the region in 2025 and 81 per cent across the UK and Ireland.

For Ginni Cooper, partner at accountancy and advisory firm MHA, the figures demonstrate the resilience of manufacturers despite rising costs. However, she believes greater political and economic certainty is now needed to give businesses the confidence to plan, invest and grow over the long term.

She said: "The prime minister's commitment of an extra £15bn spending for the defence sector yesterday will be good news for those who supply into defence, although it often takes time for increases in government spending to make their way through the supply chain.

"However, the difficulty for the sector at the moment is it isn't effectively able to plan forward."

Ginni said greater clarity around taxation, skills and industrial policy would help manufacturers plan with greater confidence.

She added: "It's likely we will also have another new prime minister in the coming weeks, which could lead to further policy changes.

"It's better for the industry to know what changes are likely to happen, even if these are not positive for manufacturers, as this allows them to prepare."

She also discussed proposals to accelerate devolution, saying greater local decision-making could benefit manufacturers if it enables skills provision to better reflect regional industrial strengths.

She said: "There could be real positives for manufacturers in increased devolution, especially if it allows areas of the North West to shape skills provision around local industrial strengths. We have already seen benefits from devolution in areas such as Greater Manchester.

"However, we need to understand what any further changes mean in practice, so local decision-makers and industry leaders can plan and invest with confidence."