Manufacturers in the North West are set to experience significant growth due to a period of increased political stability, according to the latest Manufacturing Outlook survey by Make UK and business advisory firm BDO. The survey reveals that nearly 60% of companies believe the recent change in government will foster better economic growth over the next 12 months.
Business confidence in the North West is on the rise, reaching levels comparable to the early recovery phase post-pandemic. The balance on output in the region stands at +19%, with forecasts predicting a leap to +69% in the next quarter, the highest among all UK regions. Similarly, total orders are projected to increase from +50% to +69% within the next three months.
This anticipated growth is driving strong recruitment intentions, with firms planning to hire more staff to meet demand. The balance on recruitment is expected to rise from +19% in Q3 to +56% in the upcoming quarter. Investment decisions are also aligning with this trend, as the balance on investment has climbed to +44%.
Make UK forecasts a 0.5% growth in manufacturing for 2024, adjusted downwards from an earlier forecast of 1.2% due to revisions by the Office for National Statistics. Meanwhile, GDP is projected to grow by 1.1% in 2024 and 1.8% in 2025.
Dawn Huntrod, Region Director for Make UK in the North, indicated that these results underscore the positive impact of the new government on regional stability. She emphasised the need for sustained momentum through a new industrial strategy and the Autumn Statement to enhance growth, particularly by investing in major infrastructure projects.
Graham Ellis, Head of Manufacturing at BDO in the North West, echoed this sentiment, highlighting the importance of an effective industrial strategy to maintain the current business confidence. He pointed out that the government’s forthcoming steps are crucial to ensuring that firms’ optimism about future economic prospects is well-founded.
With the Autumn Statement and Spending Review scheduled for the end of October, Make UK urges the government to maintain momentum by detailing the long-awaited Industrial Strategy and outlining the composition and governance of the Industrial Strategy Council.
The North West manufacturing sector is poised for substantial growth, driven by increased business confidence and political stability. It remains crucial for the government to support this momentum with effective industrial strategies and investments.