Business Trends

Release date: 22/01/2007

Continued improvement for Yorkshire Manufacturers

The climate for manufacturing in Yorkshire was still improving at the end of 2006, according to EEF Yorkshire and Humberside, who represent manufacturers across the region. EEF’s final Business Trends Survey of 2006 sets out the state of Yorkshire manufacturing.

Manufacturers had seen an improving picture on output and orders during much of 2006, and this was continuing, although as firms feared the improvement was slowing a little.

The improving picture reflects continuing growth in orders from overseas, which have continued to improve although the UK picture has turned slightly negative.

Half of the companies responding to the survey said that numbers of people employed were stable. For some however the situation had become more difficult, with 31 percent of respondents having reduced headcount.

EEF Yorkshire and Humberside Chief Executive Ian Hughes said that there was some good news on the prices front: “An increasing number of companies are finding that they can implement price increases, both at home and abroad. However, pressure on margins continues. As expected the slight easing noted in the last quarter does not seem to have been sustained.”

He added: “Plans for capital expenditure, which were improving, have taken a turn for the worse.”

Looking ahead a continued small improvement in orders is expected, with exports leading the way.

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