Manufacturing companies across the West of England have increased output and investment over recent months, resulting in new jobs and a brighter outlook than most other regions of the UK.
The upbeat picture emerged from a major survey published today which also showed the slump in the oil price has had little impact so far on manufacturers in the region. 
As a result the manufacturers’ organisation EEF, which commissioned the survey with global law firm DLA Piper, described West businesses in the sector as “brimming with confidence”.
The findings show that 18% of the region’s manufacturing firms quizzed for the report had increased output while 5% had stepped up investment so far this year. This resulted in a net 22% seeking to recruit more workers. However, orders remained flat.
The results contrast sharply with those of other regions such as the North East and North West where the fall in the oil price has impacted on orders. While oil at $50 a barrel may be hailed as a boon for consumers, it is a negative factor for manufacturers in the oil and gas supply chain.
The manufacturing recovery in the region looks set to continue with manufacturers expecting surges in output and orders in the coming quarter, according to the survey results.
The region’s manufacturers are now among the most optimistic in the UK, with the region coming second only to the West Midlands in terms of confidence.
EEF regional director Phil Brownsord said: “Any concerns that manufacturing activity might wobble at the start of 2015 have been quashed. These findings show that output, investment and employment all headed in the right direction, with only orders remaining flat, which is a good indication of the confidence companies feel.
“Having made such a great start to the year, the region is brimming with confidence. 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.”
