Surge in orders for East of England manufacturers

The second quarter Manufacturing Outlook survey showed that output in the region climbed to a balance of +44 per cent which is high by historical standards although total orders flattened somewhat to neutral territory. 

This performance in output has translated into a boost for job prospects with recruitment intentions positive at +29 per cent. Meanwhile investment (+56 per cent) is also being ramped up in order to meet this demand.

The food and drink sector is a major contributor to the East of England economy and besides being recession proof is also benefiting from an upswing in production ahead of the summer hospitality season.

Despite this the survey has also shown that manufacturers’ opinion of the United States as a positive growth market for exports has fallen sharply, with the US slipping out of the top three global regions for the first time. 

The US has dropped to fourth place for UK manufacturers as preference is shown to Asia/Oceania and the Middle East as companies respond to tariffs and increased uncertainty.

A survey on the impact of tariffs conducted by Make UK also shows that six in ten companies expect their export volumes to the US to be hit, while a similar number (63 per cent) expect their business to be negatively impacted by tariffs. 

Almost a third of companies are assessing changes to their supply chains in terms of where they source from, while more than a quarter are now seeking new markets. Just four per cent of companies said they would now invest in manufacturing in the US.

The survey also reveals worsening prospects for manufacturers looking forward, with the manufacturing growth forecast for 2026 being slashed from a previous +1 per cent to -0.5 per cent. Meanwhile the growth forecast is expected to be negative this year (-0.2 per cent) off the back of a flat year in 2024; this presents a worrying trend of decline.

Peter Harrup, Head of Manufacturing at BDO in the East of England said: “This quarter’s results are a real boost to East of England manufacturers. The growing output levels in the region are proof of manufacturer’s resilience, and last month’s trade deals should only strengthen this.

“Whilst the sector’s overall forecasted decline in growth is concerning; the appetite for skilled recruitment and targeted investment is strong in the region.”