Major jobs boost for West Midlands manufacturers - survey
A new report from Make UK, the manufacturers ' organisation, and accountancy and business advisory firm BDO LLP shows that manufacturing remains central to the success of the West Midlands, with the sector accounting for almost 15 per cent of the region 's economy in 2022, way above the national average of 10 per cent and a significant increase on the share in 2021 (14.1 per cent).
This growth has resulted in a significant boost for manufacturing jobs in the region with the sector employing 310,000 people in 2022, an increase of 18,000 compared to 2021.
Given the pick up in demand in the automotive sector as supply chain shortages of semi-conductors and post pandemic demand has improved the picture of companies in the region looks bright according to Make UK.
Three subsectors account for over half (56 per cent) of regional manufacturing output. Transport, largely automotive, remains the biggest manufacturing sector in the region accounting for more than a quarter of output (28.3 per cent per cent), followed by metal products (16.1 per cent) and then machinery equipment (11.8 per cent).
The West Midlands also continues to be a strong export performer, accounting for 8 per cent of total UK manufacturing exports. The EU is the region 's main export destination where its dependence in 2022 decreased slightly compared to 2021 at 45 per cent (the UK average is 52 per cent) followed by North America (24 per cent) and Asia & Oceania (17 per cent).
Chris Corkan, regional manager for Make UK in the Midlands, said: “Industry remains critical to the growth of the West Midlands economy, providing high value, high skill jobs and aiding the process of levelling up.
“To build on this position we need a national industrial strategy which encompasses local growth strategies which fit with the priorities and strengths of the region including infrastructure, innovation and skills in particular. ”
Jon Gilpin (pictured), head of manufacturing at BDO in the West Midlands added: “The manufacturing jobs growth we have seen in the West Midlands across the last year is testament to the resilience of the sector as a whole.
“Manufacturing companies across the region have had to overcome the multiple challenges thrown up by Brexit, shortages in skilled labour, pandemic-related supply chain delays and the huge energy price rises we have seen following the Russian invasion of Ukraine.
“While everyone is hoping for some respite, the headwinds show no sign of abating. With high inflation and interest rates continuing to rise, manufacturers will need to remain alert, responsive and resilient in the face of any future geopolitical or economic shocks. ”