Aerospace and defence firms in the West of England are experiencing “very strong demand” for business, bucking a wider UK decline in manufacturing, according to a new report.
Manufacturers across the region have reported a strong start to the year, the survey by national manufacturing body Make UK and business advisory firm BDO found.
Both output (+32%) and orders (+39%) were positive, with the forecast set to improve further in the next quarter. As a result, companies are looking to hire more staff with recruitment intentions increasing from +5% to +21% over Q2, the report said.
Capital expenditure plans are also significantly ahead of the national picture at +32%, while the South West’s renewable energies sector is also seeing strong demand.
Nationally, Make UK is forecasting that British manufacturing will contract by -0.5% in 2025, down from a forecast of -0.2% in the last quarter, before growing by 1% in 2026.
Matthew Sewell, head of manufacturing at BDO in the South West, said: “The economy in the South West relies heavily on manufacturing, in particular the strength of the aerospace, defence and renewable energy sectors . It’s encouraging to see the region have a strong start to the year, but we cannot be complacent – our manufacturers are resilient but they’re not invincible.
“Manufacturers across the South West now need targeted support from government, whether that be reducing complexity, streamlining trade or boosting access to capital to enable them to focus on growth.”
Make UK is now calling on the government to bring forward a long-term industrial strategy with advanced manufacturing “at its heart” to help grow the economy.
Keri Anne Mruk, region director at Make UK in the South, said: “This has been a strong start to the year for manufacturers in the South West with the region bucking the national picture.
“To build on this it’s now essential that Government brings forward an industrial strategy at the earliest opportunity. This will give manufacturers the confidence to plan for the future with a stable, supportive policy environment.”
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