Welsh manufacturers have got off to an upbeat start to 2015, with output, orders and employment all heading in the right direction, according to a major survey published by manufacturers’ organisation EEF and global law firm DLA Piper.
Their findings show that while the economic environment has been somewhat turbulent, manufacturers in Wales have still put in a good performance in the first quarter of the year with a net 29% reporting increased output and 14% saying the same of orders.
There was also good news for employment, with a net 14% of the region’s manufacturers on the recruitment trail during the first quarter of the year. Investment however remained flat.
The region’s results contrast sharply with those of other areas of the UK such as the North East and North West where the fall in the oil price – hailed as a boon for consumers, but a negative for manufacturers in the oil and gas supply chain – looks to have had an impact on orders.
The buoyancy continues with Welsh manufacturers expecting a surge in orders, while output and employment intentions still remain high. Looking ahead to the rest of the year, according to the survey, the Wales’ manufacturers are confident, but trail behind most of the rest of the UK in the confidence stakes.
Nationally, EEF is continuing to forecast healthy growth at 1.7% this year, revised down slightly from 2% last quarter. GDP is expected to increase by 2.8% in 2015, a slight upward revision from 2.6% last quarter.
Paul Byard, Director for Wales at EEF, said: “Any concerns that manufacturing activity might wobble at the start of 2015 have been quashed. These findings show that output, orders and employment all headed in the right direction, which is a good indication of the confidence Welsh companies feel.
“The good news is that this solid start looks set to continue. While confidence levels overall are holding firm, policies to sustain positive investment plans, encourage exporters and improve access to skills remain the order of the day.”
Richard May, partner and Head of the Manufacturing Sector at DLA Piper, said: “As a global law firm, it is particularly pleasing for us to see new export orders growing alongside a generally positive outlook for the British manufacturing sector with companies still intending to recruit and invest. It will be interesting to see what impact the result of the UK general election has on the outlook for Welsh manufacturers in the next quarterly survey.”