Following the recent General Election, manufacturing companies in the North East are experiencing renewed optimism. A survey reveals a positive outlook for economic growth.
The report, crafted by Make UK and BDO, highlights that 58% of manufacturers in the North East anticipate improved economic conditions in the coming year. Companies are preparing to increase total orders and expand their workforce.
Survey Highlights Increased Confidence
A recent survey conducted by Make UK in collaboration with BDO reveals that manufacturing firms in North East England are increasingly upbeat about their economic prospects following the recent General Election. The survey uncovered that 58% of the firms expect enhanced economic growth over the next 12 months, a sentiment marking a significant improvement in industry confidence.
The results suggest that many companies are witnessing an upswing in total orders, anticipating further increases shortly. This positive trajectory is likely fuelled by a combination of political stability and strategic governmental measures aimed at bolstering the industrial sector.
Call for Industrial Strategy Commitment
While confidence is on the rise, there is a concerted push for the new Government to commit to a comprehensive UK Industrial Strategy. Industry leaders argue that such a strategy would provide a robust framework to sustain and enhance this newfound optimism within the sector.
Dawn Huntrod, region director for Make UK, emphasised the necessity for governmental initiatives in the new industrial strategy, particularly calling for investments in major infrastructure projects. These would not only drive immediate growth but also promise long-term economic returns.
Ahead of the Autumn Statement, manufacturers are eagerly anticipating details on the UK Industrial Strategy, including aspects like the composition and governance of the Industrial Strategy Council.
Bridging the Skills Gap
Despite the positive sentiment, there are concerns about translating optimism into tangible economic output. One primary challenge is addressing the skills gap in the manufacturing workforce.
Manufacturers in the region are heavily reliant on skilled workers to meet increasing demands. There is a clear need for initiatives that will support skills development and training.
Addressing these workforce challenges is crucial. Strategic partnerships between educational institutions and industry players could provide a sustainable solution, equipping future generations with the necessary expertise to thrive in the manufacturing sector.
Impact of Economic Indicators
Economic indicators over recent months present a mixed picture. While confidence among manufacturers is surging, national figures from the Office for National Statistics revealed a stagnant growth trend in July.
The Organisation for Economic Co-operation and Development (OECD) has similarly noted that the UK’s economic outlook is improving but stresses the importance of urgent reforms.
Such statistics underscore the necessity for a strategic approach to economic revival, aligning with the manufacturing sector’s call for a structured industrial strategy.
Insights from Industry Leaders
Industry leaders remain cautiously optimistic. Steve Talbot, head of manufacturing at BDO, expressed that political stability could lead to improved economic outcomes, enhancing business confidence.
However, Talbot also noted that only time will tell if this confidence can directly translate into increased production and hiring activities, reiterating the reliance on skilled labour in the region.
He highlighted the importance of leveraging political and economic stability to foster a conducive environment for sustained growth.
Challenges and Opportunities Ahead
The North East’s manufacturing sector faces both challenges and opportunities. While the promise of economic growth is evident, realising this potential requires strategic action.
Infrastructure investments emerge as a critical area of focus, offering opportunities to drive substantial economic contributions.
A holistic approach, addressing workforce development and infrastructure needs, is necessary to harness the full potential of the sector.
Future Outlook and Strategic Priorities
Looking ahead, there is an evident need for continuous collaboration between industry stakeholders and the Government to ensure the region’s economic ambitions are realised.
Such collaboration would act as a catalyst for innovative solutions to existing challenges, promoting sustained economic growth.
The survey paints a promising picture for the North East manufacturing sector. However, seizing the opportunities will require strategic planning, addressing workforce capabilities, and aligning with national economic strategies.