West Midlands manufacturers are continuing to see strong growth prospects as economies continue to open up and the economic recovery strengthens, according to a survey published today by Make UK and business advisory firm BDO.
Having seen a brutal 10% decline in output in 2020, the sector in the UK overall is now set to recover a significant amount of that loss in 2021, with forecasts suggesting it will have recovered the total loss from last year by the end of 2022.
Make UK, added, however, supply chain disruption and some labour shortages could hamper this improving picture in the final quarter of the year.
The slow recovery in the automotive sector where the West Midlands has a high exposure could also have an impact for some time.
In particular, both UK orders and total orders were strong for West Midlands companies with the total order balance of +54% very robust by historical standards. While output fell slightly, due to a reduction in car production in the last quarter, the business confidence indicator remains positive and points to continued growth for the immediate future.
North West manufacturers are seeing strong growth prospects as economies continue to open up and the economic recovery strengthens.
According to a major survey published today by Make UK and business advisory firm BDO, the sector which saw a 10% decline in output in 2020 is now set to recover a significant amount of that loss in 2021, with forecasts suggesting it will have recovered the total loss from last year by the end of 2022.
Make UK, added, however, supply chain disruptions and some labour shortages could hamper this improving picture in the final quarter of the year.
Both UK orders and total orders were very strong for North West companies in the last quarter, while the output balance of +63 was the strongest of any UK region.
The employment balance of +53% was also the highest of any UK region for the second quarter in succession, showing job prospects in North West manufacturers are improving dramatically as firms seek to meet demand.
UK manufacturers’ costs rose at their fastest pace in a decade last month, adding to concerns price rises in the British economy may be much stickier than expected after separate data published it shows consumer price inflation jumped at its fastest rate on record.
Input prices – typically materials used in the day-to-day running of manufacturing businesses – jumped 11 per cent in August, the fastest rate of growth since late 2011, according to the Office for National Statistics (ONS).
Inflation rose at the fastest rate since records began last month, new data showed today, though economists warned the jump was likely to be temporary.
The construction industry warned that the bump in prices would put contractors’ margins under even more pressure over the coming months.
Soaring oil and fuel prices triggered by a resurgence in global demand as economies have emerged from Covid-induced lockdowns was the main contributor to manufacturers’ cost increases.
/https://www.cityam.com/uk-manufacturers-costs-rise-at-fastest-pace-in-a-decade/