Today’s news that confidence is high among UK manufacturers has been backed by the Manufacturing Institute which says Northwest firms are sharing the optimism.
The MI’s latest quarterly survey reveals a polar reverse in terms of outlook from manufacturers in Northwest England. Forty-eight per cent expect their businesses to grow over the next 12 months. This is over double the figure from the last quarter. Conversely, just 23 per cent expect their business to contract over the coming year. Three months ago this was 50 per cent.
The firms in the survey said expenditure has been cut on staff and inventory since the credit crunch began, with the cash put into marketing, new product development and continuous improvement instead. The reduction of production and raw materials costs was highlighted as they key challemge over the year ahead.
Adam Buckley, head of programmes for The Manufacturing Institute: “The evidence points to a less gloomy outlook, but there is no denying that conditions remain extremely tough, especially for those in industries supporting the housing, automotive and construction industries which are exposed to the full brunt of recession.”
The Manufacturing Institute is part of the Manufacturing Advisory Service North West and offers free support to manufacturing businesses in the region.