Yorkshire named top performing region for manufacturing as orders fly in

The latest quarterly Manufacturing Outlook survey from Make UK and business advisory firm BDO showed total orders in the region performed strongly at a positive balance +65 per cent, the highest figure for any UK region and almost double the level of total orders seen in the final quarter of last year.

The figure was buoyed by very strong domestic orders, although overseas orders also remained strong as a reflection of world markets which have rebounded throughout the course of the last twelve months.

The region has benefitted in the last year from a strong recovery in the food and drink sector as hospitality has fully re-opened, while demand for steel has remained high on the back of significant investment in infrastructure projects in the UK and abroad.

This performance is reflected in the jobs outlook across the region with the second highest level of recruitment intentions in the UK as companies hire to meet demand. Investment intentions are also above the national average.

As with the national picture, the big challenge for companies, in addition to attracting and retaining talent, remains the escalating inflationary pressures which are forcing companies to raise prices at record levels for the fifth successive quarter.

In response to the rapidly escalating costs, Make UK is urging the Chancellor to use next week’s Spring Statement to take whatever measures are necessary to support companies dealing with rapidly increasing energy prices in particular.

Steve Talbot, Head of Manufacturing at BDO in Yorkshire, said: “While order books for Yorkshire & Humber manufacturers are higher than any other UK region, we are seeing creeping concerns across UK manufacturing and a worrying widening of the gap between supply and demand.”