Manufacturers are seeing the potential for growth

A survey of more than 100 companies by the EEF showed that business leaders feared eurozone markets would offer few growth opportunities in 2013. Around a third of those polled said they expected economic conditions to improve, although one in four predicted a further deterioration.

Andy Tuscher, regional director for the EEF, the manufacturers’ organisation, said: “The past year has been a challenging one for UK manufacturers, but as they look to 2013 there is still growth potential in their businesses.

“The increases in investment in innovation in recent years will bear fruit as companies see opportunities from new product development and, the commercialisation of new technology. Moreover, these efforts will provide a platform for UK exporters to compete in faster growing markets and support efforts to diversify into new supply chains.

“There is, however, no getting away from the clouds that linger on the horizon. While the risk of a break-up in the eurozone has diminished, most of it remains in bad shape, leading to continued caution in business planning.

“At the same time, concerns around the wider global demand picture have grown amongst manufacturers.” 

Alan Halsall, chairman at Silver Cross, a Skipton-based business, which designs and manufactures a range of products including prams, furniture, toys and car seats, painted a positive picture of the year ahead for the £20m turnover firm.

He spoke of how the company is targeting high growth economies where the British brand is well received.

Mr Halsall said: “Silver Cross is delighted to be manufacturing the Balmoral luxury pram and the Oberon and Chatsworth dolls prams in Yorkshire. We are confident that sales will only increase in 2013 due to the fact that they are luxury products made in England. The prams are being targeted at high growth economies in Asia Pacific where the unique look and the superb quality allied to the premier British brand makes a very positive impact.

“Sales of the Balmoral pram from the new Silver Cross Hong Kong flagship store have already proved how popular the British made product is in Hong Kong.”

Laurence MacKenzie, managing director at Winder Power, a Leeds-based company which designs and manufactures power transformers and equipment for specialist generators, said that he agrees with the sentiment that there are “real opportunities for growth”.

He said: “Well run Yorkshire companies with a sharp focus on quality, customer service and managing their cost base can do well, especially in the right markets.”

Yesterday, a separate survey showed that businesses across the Sheffield City Region are predominately seeing an increase in sales but expectation of growth continues to fluctuate.

More than 85 companies from across the Sheffield City Region took part in the latest British Chambers of Commerce’s Quarterly Economic Survey.

Manufacturing saw a significant increase in export sales and orders, reaching the highest level for the year, while the sector also enjoyed improved sales and orders in the UK market.

There was a reduction in investment, turnover and profitability, but overall the figures showed an improvement compared with 2011 levels.

There was also reduced employment and expectation of jobs in the sector, however, this followed a strong recruitment period in the previous quarter.

The service sector saw an increase in UK sales and orders compared with the previous quarter, but export sales and orders were reduced.

It experienced a slight improvement in employment and expectations for new jobs, but cash flow and investments remain static, while turnover and profitability continued at good levels.

Richard Wright, executive director of Sheffield Chamber, said it is “pleasing to see exports in the manufacturing sector reach one of the highest levels for a long time”.

A survey by Hull & Humber Chamber of Commerce based in the fourth quarter showed rising confidence among local businesses and UK sales and orders beginning to strengthen. Exports continued to remain high, though down slightly on the previous quarter, according to the research.

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