West Midlands manufacturers enjoy positive end to the year – survey

West Midlands manufacturers have enjoyed a positive end to the year with output growth remaining positive on the back of a strong performance from UK orders.

According to the survey, the balance on output was +41 per cent which is strong by historic standards and, looking forward to the first quarter of next year this positive picture is set to continue with an order balance of +50 per cent which is very strong.

According to Make UK this reflects the continued recovery in the Automotive sector and the transition to new models.

Encouragingly investment intentions performed strongly at a balance of +41 per cent but the pre-Budget speculation about potential tax rises and other labour costs clearly significantly affected job prospects in the region as these turned flat in line with the national picture.

Looking forward job prospects across the region are forecast to pick up at the start of next year with a balance of +41 per cent which is very strong.

Despite the positive end to the year, Make UK also cautioned against the survey kick starting a period of stronger trading, as growth forecasts for the sector remain weak with output forecast to grow by just 0.5 per cent this year and contract by -0.5 per cent in 2026.

Chris Corkan (pictured), region director of Make UK in the Midlands, said: “After a period of considerable uncertainty in global markets, these figures are an encouraging sign that West Midlands manufacturers’ confidence is improving and, more importantly, being translated into growth and investment.

“To build on this, given the UK’s eye watering industrial energy costs it’s now vital that Government brings forward the proposed business energy support scheme as fast as possible and expands it across the sector to the broadest number of companies.”

Chris Cole, head of Manufacturing at BDO in the Midlands added: “This year has been a volatile one for UK manufacturers. Whilst the last quarter has shown solid signs of growth for the Midlands, the sector needs to feel assured to enable them to put their hands in their pockets and invest. 

“Last month’s Budget gave manufacturers some relief in terms of investment, green transition and some positive skills measures but it fell short in addressing some of the biggest concerns the sector is facing.

“Businesses need decisive action if growth is to be realised.”