Manufacturing continues to drive growth - survey
Britain's manufacturers are continuing to drive UK economic growth on the back of export-led demand, according to a new survey.
The Manufacturing Outlook report from manufacturers' organisation EEF and accountancy organisation BDO suggests that the current trend will continue, with "solid growth" forecast for the remainder of 2011 and 2012.
According to the survey's second quarter results, the UK's manufacturing sector has expanded further, marking the sixth consecutive quarter of growth.
Alongside the positive investment intentions, the survey indicates a further gradual improvement in confidence.
Over the last six months, when the economy as a whole stagnated, manufacturing grew by 2.3 per cent. Since the recovery began the sector has been responsible for one third of economic growth. Even in the first quarter of 2011, where the industry’s growth rate slowed a little, manufacturing accounted for approximately one quarter of total economic growth.
Jason Whitworth, partner at BDO, said: "On the back of healthy output and order books, the intention to recruit amongst manufacturers has remained strong, with official data showing record levels of vacancies.
"What we are witnessing among our client base is the willingness to recruit - but it's often very difficult for employers to find people with the adequate skills set to fit the role. We are faced with a short term problem that can only be overcome by long-term solutions.
"To ensure the UK retains its competitive edge, the government must do more to emphasise education in engineering and manufacturing to guarantee its future workforce has the appropriate skills to deliver the sector’s needs."
EEF’s forecast for manufacturing growth, at 3.2 per cent this year, is down slightly from the previous quarter. Engineering is projected to expand by more than 6 per cent.
