South East manufacturers have seen a strong start to the year according to a survey published by Make UK and business advisory firm BDO.
The Make UK/BDO Manufacturing Outlook Q1 survey shows that both output (+12%) and orders (+6%) were very positive, with the forecast set to improve further in the next quarter with forward looking balances of +41% and +53% respectively.
This reflects a concentration of the electronics, and food and drink sectors in the South East region, both of which regularly demonstrate strong growth patterns.
In response to this positive picture companies are looking to take on more people with recruitment intentions increasing from +12% to +35% in the next quarter.
Capital expenditure plans are also significantly ahead of the national picture at +12%.
To build on this buoyant sentiment, Make UK is calling on the Government to bring forward a comprehensive, fully funded and modern, long term industrial strategy which has advanced manufacturing at its heart, something it has committed to do before the summer.
This must be aligned across Government to include a defence industrial strategy as well as energy, trade and skills strategies that demonstrate to business and foreign investors that there is a cohesive plan to grow the UK economy.
Make UK is forecasting that 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. GDP is forecast to grow by 1% in 2025 and 1.5% in 2026.
Commenting, Keri Anne Mruk, Membership Manager at Make UK in the South, said:
“This has been a strong start to the year for manufacturers in the South East 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.”
Matthew Sewell, Head of Manufacturing at BDO in Southampton said:
“The economy in Southampton and the wider South East region relies heavily on manufacturing, in particular the strength of the food and drink and electronics 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 region 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.
