The Manufacturing Forum, which comprises chambers of commerce, the Cutlers Company and EEF members, is calling on ministers to help manufacturing remain competitive in the future.

Member Richard Wright, former president of Sheffield Chamber of Commerce who works within the advanced engineering and materials sector, said: "The outlook for manufacturing is good. As well as all the innovative work going on in our region, there are plenty of new opportunities on the horizon.

"The Government needs to ensure that manufacturers' tax and regulation burdens do not increase any more – and reduce them where possible. The Government should also be championing flexible labour laws, credit availability, and research and development support."

Martin Howell, Master Cutler and chairman of the Manufacturing Forum, added: "Cash flow is key at this point. This is not a time for banks to be reducing credit availability and one thing we can all do is pay our suppliers on time – small companies will struggle to survive if their customers take longer to pay.

"This is one area where public organisations in particular could have a really positive impact on SMEs in our region – by paying their suppliers promptly, they will be helping to ensure the fu-ture of our local manufacturers."