Region’s firms buoyed by fine start to year

Nearly half (47 per cent) of local manufacturers reported order growth in the first three months of the year, according to the latest quarterly manufacturing outlook survey published today by EEF, the manufacturers’ organisation, and business advisers and accountancy firm BDO LLP in Yorkshire.

The EEF said this is the strongest reading ever recorded for a first quarter, which typically has the lowest trading levels, and is above the peak demand level for four years.

It said that output, employment and investment all increased, resulting in mounting regional confidence.

Manufacturing outputs reached a balance of 41 per cent, marking the highest level since mid-2011, whilst a balance of 47 per cent of companies also increased headcounts.

The EEF said Yorkshire business confidence appears to have been buoyed by the strong economic recovery that continues to take root in the region.

Looking ahead, improving trading conditions have led to a balance of 30 per cent of local companies saying they plan to increase investment in the second quarter to build on growth.

The survey said the findings indicate that Yorkshire is well on course to mirror the UK as a whole, where the recovery is well underway.

It added that key indicators such as output, orders, employment and investment intentions are approaching or are already at record highs.

The report said the ultimate test for long-term economic recovery was whether engineering companies put their intentions to invest and hire more staff into practice. The EEF is calling on the Chancellor to gear his Budget on Wednesday to securing the best possible business conditions to support growth.

Andrew Tuscher, EEF Yorkshire region director, said: “Looking ahead to the next quarter, this is the most positive set of indicators we have seen for some time. “Here in Yorkshire it looks like we’re well and truly steaming down the right road.

“Manufacturers are clearly feeling more confident as their order books fill up and exports are strong.

“It is now vital that Government does all that it can to underpin support for companies, giving manufacturers the confidence to fulfil their investment and recruitment plans.”

Jason Whitworth, partner at BDO LLP in Yorkshire, said: “Yorkshire has seen an unprecedentedly good start to the year with record high demand and a significant increase in employment and manufacturing outputs, boding well for the coming year.

“We expect to see the region continue to strengthen as the wider UK recovery takes hold.“

He said that the broad nature of the recovery that the survey points to is a source of particular encouragement as it has been some time since all sectors have been moving in the right direction.

“The fact that this is underpinned by a significant strengthening of exports, especially to Europe, adds further stability to the foundations of growth,” said Mr Whitworth.

“This should also give confidence to the Government that its support for the sector is starting to achieve the desired results.”