Manufacturers see strong start to year
MANUFACTURERS in the South East have seen a strong performance at the start of the year, according to the latest quarterly Manufacturing Outlook survey from Make UK and business advisory firm BDO.
According to the survey, all the indicators in the survey were strong, although they continue the trend of easing from the record levels seen in the first half of last year.
Total orders were at a balance of +34 per cent, which is still high by historic standards.
Both UK and export orders are also performing strongly, a reflection of world markets which have rebounded throughout the course of the last 12 months.
This performance is reflected in the jobs outlook, with South East companies hiring significantly to meet demand.
Investment intentions are also above the national average.
As with the national pic
ture, the big challenge for manufacturers, 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.
Make UK has forecast growth for manufacturing in 2022 of three per cent.
Make UK South East regional director Jim Davison said: “Manufacturers in the South East have seen a very strong start to the year as the economy has fully re-opened.
“However, companies are now facing eye-watering increases in costs which are threatening to stop the economy in its tracks.”
Mark Hutton, head of manufacturing at BDO in the South East, said: “While all performance indicators remain strong for manufacturers across the region, we are seeing a worrying widening of the gap between supply and demand UK wide.
“Costs are rising at a speed that they cannot respond quickly enough to and, combined with supply chain disruptions which will sadly now be exacerbated by the invasion of Ukraine, manufacturers will be looking for some support from the Chancellor.”