The South West’s manufacturers contribute a staggering £15billion to the region’s economy, a new report shows.
The study, by manufacturers’ organisation Make UK and accountancy and business advisory firm BDO LLP , reveals South West manufacturers have remained in a healthy position despite the global downturn and uncertain political environment.
The report, analysing the overall status of industry in the region over the past 12 months shows transport equipment remains the dominant sector in the South West, accounting for almost a quarter of output, with the region continuing to benefit from a strong aerospace sector.
This has a knock-on benefit for the second most important sector, metals. The top three is completed by food and drink, which accounts for a tenth of total production, and is the UK’s biggest overall manufacturing sector accounting for just under 15% of all manufacturing output.
The South West also continues to be a strong export performer, accounting for almost 6.3% of total UK manufacturing exports.
The region has a low exposure to the EU compared to other UK regions with 45.2% of exports going to the bloc, followed by Asia with 18.4%.
The diversity of export markets for South West manufacturers is highlighted by the importance of the Middle East and North Africa which account for almost a tenth of exports (9.9%).
Jim Davison, director of member engagement for Make UK in the South West, said: “The report shows that industry continues to have a central role to play in the success of the South West economy. The last year has seen a strong performance, despite the uncertain political environment and global markets.
“There are well documented challenges going forward, not least Brexit and the global economic downturn.
“Despite this, however, those companies who invest and innovate will still have the best long term prospects and can contribute to raising the productivity performance of the region and the UK as a whole.”
Matthew Sewell, head of manufacturing at BDO in the South West said: “It is positive to see the region’s manufacturers maintaining a healthy position despite challenging times.
“However, companies are already holding back on investment as a result of the prolonged period of Brexit instability and risk lagging behind their global competitors when it comes to the uptake of industry 4.0 processes and technology.
“It will be difficult for many manufacturers to regain lost ground in these areas particularly as digital transformation picks up pace.
“The contribution to the overall UK economy by manufacturers in the South West should not be underestimated.”
