Manufacturing output continues to climb

News Article - 21 January 2011
Category: Business

Recent production figures released by the Office for National Statistics support claims that manufacturing enjoyed a particularly strong end to 2010.

Total manufacturing production in November was 5.6 per cent higher than in the same period in 2009. All sub-sectors ramped up production except chemicals and man-made fibres.

The best performer was the machinery and equipment industry, with a 20 per cent increase in production. This may suggest that manufacturers are now looking to add capability by investing in new technology.

The crucial food, drink and tobacco products industries performed positively, with an 8.7 per cent increase. Basic metals and metal products also beat expectations with an 11.6 per cent rise in production.

Overall industrial output increased by 0.6 per cent month-on-month. This increase was driven significantly by the transport equipment industries which posted a 3.2 per cent rise in production.

Lee Hopley, chief economist of manufacturer's organisation EEF, is confident about manufacturing prospects for 2011 but warns firms not to become overconfident amidst potential risks to growth: "Manufacturing continues to build up a head of steam with growth running at almost 4 per cent for the year as a whole. The sector looks set to drive the right sort of growth and outperform the economy overall but companies will have to navigate a host of potential risks, from uncertainty about prospects in key markets to the impact of looming austerity measures."

Manufacturers will no doubt be spurred on by the latest figures, but will not want to become complacent; recent research suggests economic growth will stall during the early parts of 2011 and the VAT rise, in addition to the Government's Comprehensive Spending Review, will make conditions even more difficult for manufacturers.

Improving profitability is essential in order for manufacturers to emerge strongly in 2011; Access business software can help. estimates and quotation management software allows firms to quickly calculate costs, selling prices and margins to ensure the customer gets what they're looking for while protecting valuable profit margins.

For more information on how Access business software can help manufacturing firms consolidate resources and improve profitability, please call us on 0845 345 3300.

Article keywords: production figures, Office for National Statistics, manufacturing production, Lee Hopley, EEF, Access business software, estimates and quotation management software

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »