Firms vital to area

A new report from Make UK, the manufacturers’ organisation and accountancy and business advisory firm BDO LLP, shows that manufacturing remains central to economic success in the North East.

The sector accounting for over 15% of the regional economy, a significantly higher proportion than the UK average.

The report, analysing the overall status of industry in the country over the last 12months shows that North East manufacturers have endured a difficult period amid the uncertain political and economic environment, with output and order balances down over the period, albeit still remaining positive.

In line with the national picture, employment and investment balances have also eased as conditions have become more difficult.

In terms of sectoral contribution the regional is heavily reliant on the automotive sector with 15% of direct output related to transport equipment and a further 12% working in metal products, a key input for car production.

The top three is completed by the chemicals sector which occupies 13% of manufacturing production.

The report shows the North East accounts for 3.9% of total UK manufacturing exports.

In response, June Smith, Director of Member Engagement for Make UK in the North, said: The report shows that industry continues to have a central role to play in the success of the North East economy, despite the uncertain political environment and global markets.”