North West manufacturing - 'only the best!'
03/05/2011 Manufacturing Advisory Service North West (MAS)
* Quarterly economic survey confirms Government acknowledgement of the importance of manufacturing* Manufacturing in the North West is a great stimulator for other industry sectors in the region
The quarterly economic survey carried out for the Manufacturing Advisory Service (MAS) NW by respected economist Brian Eaton has shown that the region's manufacturers remain a vital engine of economic growth and continue to contribute significantly to the UK economy.
The regular MAS-NW monthly survey of manufacturers (due out in May), which concentrates on the concerns of small to medium businesses in the North West - continues to highlight concerns about raw material prices, cash flow and sales, but there remains an underlying resilience and optimism which is evident throughout the region as supported by Brian's quarterly research.
Activity and new business have both risen sharply and employment growth has been maintained, despite input and output price pressures remaining at near record levels. This is supported by the Lloyds TSB North West Purchasing Managers Index (PMI), up from 56.2 in February to 58.1 in March, demonstrating its fastest output growth for ten months.
The North West region of the UK continues to be the UK's largest manufacturing region, with 332,000 employees accounting for 13.5% of the UK's manufacturing total, ahead of its nearest rival region by 40,000.
Brian Eaton's report shows that the North West's manufacturing continues to stimulate jobs in the supply chains of other sectors, both manufacturing and non-manufacturing alike. In particular, automotive, aerospace, the service sectors (including sport, retail and leisure) and their supply chains continue to benefit and grow from their relationship with manufacturing.
With 14 separate manufacturing categories defined by the Office for National Statistics (ONS), the North West, as overall leader, takes top position in five; chemicals, transport equipment, coke/refined petroleum/nuclear, rubber/plastics and textiles, accounting in total for £9.7 billion Gross Added Value (GVA) or 19.6% of the UK. The North West is second only to Scotland in food and beverages, which is quite remarkable given the value of the Scottish whiskey industry alone. And even the region's third place for metals and fabricated machinery is a credible £1.6 billion GVA.
The Automotive sector - struggling worldwide and not least because of the events in Japan - has proven itself much-better equipped to survive the current economic onslaught than in previous decades, with increased productivity, skills, quality and competitiveness much in evidence. The 250,000th Freelander left the Halewood production line in March 2011, the new Range Rover Evoque is soon to commence production and Vauxhall Ellesmere Port is increasing capacity for its new Astra, including an estate version.
The region is also strong on the export front. According to Her Majesty's Revenue and Customs (HMRC), exports during 2010 were valued at £24.8 billion (11.3% of the UK's total), with £11.7 billion to the EU, £6.8 billion to non-EU areas (excluding USA) and £6.2 billion to the USA.
Adam Buckley, head of Programmes at MAS-NW said:
"Brian Eaton's report is welcome news and shows the North West is continuing to do very well in the current economic climate. That these are times of economic stress for manufacturers can be in no doubt. However, we welcome the incentives announced in the March budget changing the tax regime in relation to capital allowances for businesses. The reduction in corporation tax from 28% to 26% this year, with a further reduction to 23% in four years will definitely benefit large and medium-sized businesses, but we would like to see more help for the smaller business.
"We are proud that the North West has so many world-class manufacturers producing products that prove they are globally competitive. Even as we witness what can only be described as global economic upheaval, we have manufacturers producing goods that are being sold on the basis of either "Made in the UK" or "Made in England", which certainly is a strong testament to their high quality.
"Funded manufacturing review services, such as those provided by MAS since 2002, are there for the asking to help the region's manufacturers to continue to excel."
For more information on how MAS supports manufacturers in the NW, visit www.mas-nw.co.uk, or please telephone 0800 093 9077 to speak directly to us.
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