Region’s manufacturers raise a glass to end-of-year growth
According to the latest Make UK/BDO Q4 survey, the balance on output was +40 per cent which is strong by historic standards and, looking forward to the first quarter of next year, this positive picture is set to continue with a forecast order balance in the first quarter of +56 per cent, which is very strong.
According to Make UK this reflects the region’s strong exposure to the food and drink sector which would have ramped up production ahead of Christmas. Encouragingly investment intentions performed fairly strongly at a balance of +30 per cent while recruitment in the region held up at a balance of +11 per cent despite the pre-Budget speculation and is forecast to improve next quarter at a balance of +22 per cent.
This contrasts with most other regions where job prospects fell ahead of the Budget. Despite the positive end to the year, Make UK also cautioned against the survey kick-starting a period of stronger trading, as growth forecasts for the sector remain weak with output forecast to grow by just 0.5 per cent this year and contract by -0.5 per cent in 2026.
Chris Corkan, Region Director of Make UK in the Midlands, said: “After a period of considerable uncertainty in global markets, these figures are an encouraging sign that East of England manufacturers’ confidence is improving and, more importantly, being translated into growth and investment.
“To build on this, given the UK’s eye watering industrial energy costs it’s now vital that Government brings forward the proposed business energy support scheme as fast as possible and expands it across the sector to the broadest number of companies.”
Peter Harrup, Head of Manufacturing at BDO in the East of England, added: “This year has been a volatile one for UK manufacturers. Whilst the last quarter has shown solid signs of growth for the East of England, the sector needs to feel assured to enable them to put their hands in their pockets and invest.
“Last month’s Budget gave manufacturers some relief in terms of investment, green transition and some positive skills measures but it fell short in addressing some of the biggest concerns the sector is facing. Businesses need decisive action if growth is to be realised.”