Latest News | 22 July 2021
Report finds manufacturing remains key to region’s success
A new report from manufacturers’ organisation Make UK and accountants and business advisers BDO LLP has said that manufacturing remains central to the success of the East Midlands.
According to the report, manufacturing accounts for 16% of the region’s economy, which is well above the national average of 10%.
Three subsectors account for almost half of the region’s manufacturing output.
Food and drink is the biggest manufacturing sector in the East Midlands, accounting for almost a quarter of output (22.6%). This is followed by transport equipment (13.7%) and rubber and plastics (10.2%).
The report analysed the overall status of the manufacturing industry in the region over the last 12 months.
It found that although it had been hit hard due to Covid, the sector had seen a strong recovery since the start of the year, with output and order levels the highest of any UK region.
Jon Gilpin, head of manufacturing at BDO in the Midlands, said: “The East Midlands has a rich and diverse manufacturing base that is a large contributor to our local economy, employing more than a quarter of a million people in the region.
“Businesses were forced to rein in their investment plans and review their supply chains during the pandemic.
“Coupled with trade frictions as a result of Brexit it’s been a tough year for the sector.
“It’s vital the Government smooths out critical issues such as customs procedures to avoid adding more layers of complexity and allow local manufacturers to build back stronger and better as we enter the second half of the year.”
Charlotte Horobin, regional director for Make UK in the Midlands, said: “The report shows that industry continues to have a central role to play in the success of the East Midlands economy.
“There are well documented challenges going forward, not least the major impact of Covid and the global economic downturn, the results of which are likely to be felt for some time to come.
“However, the region has clearly weathered the storm and, given the innovation we have seen over the last year, together with the acceleration of new technologies there are very positive signs for the future success.”
