Confident manufacturing continues to expand in the West Midlands, report reveals

The number of manufacturing companies in the region has grown by 3.1 per cent over the last year.

The West Midlands' 14,670 manufacturing firms account for 14.8 per cent of the region's total economic output – well above the national average – and employed 323,000 in March this year.

The new report from EEF, the manufacturers’ organisation, and accountants BDO shows output and order balances the highest of any region in the second quarter of 2017. Since March 2010, manufacturing jobs in West Midlands have increased by 9.9 per cent, more than four times the national growth rate.

Confidence in the sector over the last 12 months is the joint highest of any region in the UK and the most improved from last year.

The West Midland also continues to enjoy an 'extremely strong' export performance, accounting for 10.9 per cent of all UK manufactured exports in 2016 – the second largest contribution by any single region, behind only the Southeast and London. 46.9 per cent of the region’s exports are destined for the EU, well below the national average.

Charlotte Horobin, EEF West Midlands region director, said: “Despite some challenging times, manufacturing in the West Midlands remains strong and the region has been one of the best performers over the last year. Firms are really in their stride with our export figures accounting for an impressive 10.9 per cent of all UK manufactured exports.

“Our output and order balance is the strongest of any region, and our automotive and transport sector continues to do well supported by an upturn in global demand. Our export strength will help us through the uncertain waters which lie ahead and we look forward to a continued strong performance in the next quarter.”

Tom Lawton, partner and head of manufacturing at BDO in the West Midlands, added: “West Midlands has been one of the star performers over the past year and this is reflected in the regions first place confidence ranking, strong export market and investment intentions and increasing manufacturing jobs.

“However to ensure continued growth, we need the Government to deliver a long-term, practical Industrial Strategy for the UK and the Regions - with a focus on the mid-market and investing in education, skills and in the Midlands infrastructure. From better roads, rail links to reliable broadband connections and support for Industry 4.0, the Government needs to help create the right environment for Midlands manufacturers’ to continue to be successful in what will undoubtedly be challenging times in the short and medium term.”