Yearly output up almost 5%

News Article - 20 September 2010
Category: Industry

According to recently released figures from the Office for National Statistics, manufacturing output has recorded its best year-on-year performance in 15 years for the month of July.

The ONS labeled the 4.9 per cent increase as 'the strongest picture since December 1994'. Broken down by sub-sector, the machinery and equipment industries (up 17.7 per cent) and the basic metals and metal products industries (up 12.4 per cent) contributed most considerably to manufacturing growth in this time period.

Monthly growth has also been recorded although it has not been as significant as annual growth, with a 0.3 per cent increase between June and July of this year. On a quarterly basis, manufacturing output has risen by 0.9 per cent from May to July. Some sectors continue to struggle in the current economic climate, however. Following a difficult year, the transport equipment sector was down 3.2 per cent between June and July.

Business Minister Mark Prisk commended the growth and labeled manufacturing as 'vital' to UK economic recovery. The manufacturing sector has so far led post-recession economic growth and experienced positive change in areas where other industries continue to struggle.

In August, employer demand in the manufacturing sector rose to its highest level since December last year. Research from global accountancy and consulting firm Deloitte found the number of manufacturing companies entering administration this year experienced a 46 per cent year-on-year decrease in the January - June period.

However, industry leaders have called for caution amongst manufacturers alongside a warning that economic growth is likely to slow in the coming months. Domestic demand has not yet increased sufficiently to give the sector enough of a boost to return it to pre-recession levels.

To avoid poor financial performance if demand slows down considerably, manufacturing companies must make the most of current economic conditions by maximising profit margins. The production control and works orders module of Access manufacturing software allows firms to run profitability reports at any time to see where process improvements or pricing negotiations are required to see a higher return on investment.

For more information, please call Access on 0845 345 3300.

Article keywords: Manufacturing news, business news, industry news, production, supply chain, manufacturing software, business software, business solutions

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