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Manufacturing: Output predicted to bounce back
Output predicted to bounce back
A new survey says that manufacturing output in the UK is set to return to pre-coronavirus levels by the end of next year, much sooner than expected.
The survey – by manufacturers’ organisation Make UK and business advisor BDO – says that although industry saw a ten per cent decline in output during 2020, much of that is set to be regained this year.
In particular, both UK orders and total orders were very strong for West Midlands companies in the last quarter, while output levels were the highest of any UK region.
According to the survey, demand in the West Midlands has also have been boosted by the recovery of the automotive sector and the resulting impact on the supply chain in the region.
However, Make UK stressed that the figures are reflecting a recovery from a very low base with balances last year reaching record lows, worse than those seen during the financial crisis.
Between 2019 and 2020, the manufacturing sector lost approximately £18bn in value which will take more than a short term boost of pentup demand to return the sector to its prepandemic size, said Make, which represents 20,000 manufacturing companies in the UK.
Charlotte Horobin, regional director for Make UK in the Midlands, said: “Manufacturing growth is now firmly accelerating as restrictions have been eased and economies around the globe have started to open up.
“Looking forward there seems no reason to believe that this will not continue assuming the shackles come firmly off in the second half of the year.
“However, given we are coming from a very low base worse than during the financial crisis we have to bear in mind that there was bound to be a rubber band impact this year. Furthermore, for some sectors such as Aerospace the limited prospects for international travel in the near future means they may struggle to return to normal trading for some time.”
Jon Gilpin, head of manufacturing at BDO in the Midlands, added: “West Midlands manufacturers have fought hard to recover from the brutal impact of the pandemic and have made great strides since the start of the year. With investment levels on the up, it appears the Government’s introduction of the temporary super-deduction tax has provided the incentive that regional manufacturers needed to bring forward their investment plans.
“We know targeted tax policies can have a huge impact but, with the melting pot of challenges ahead around supply chains, availability of basic commodities and rising inflation, we need the Government to look at longer-term strategies to allow the sector to build back better and confidently invest over the next 10-15 years.”
Big work brings big reward for Adi
A Birmingham-based engineering firm’s newest division has managed to turnover £4m in the past year, despite the coronavirus crisis.
The new division is Adi Factory, Plants and Relocation, which was launched just over a year ago by Kings Norton based Adi Group subsidiary Adi Mechanical.
The division is a specialist in the heavy lift and setting down of large industrial machinery, a fairly unusual activity which Adi had identified as a gap in the market.
Despite the pandemic, Adi has managed to source a regular stream of work in this field in the food and beverage sector, including a £3.2m decommissioning project with a well-known food manufacturer in Corby.
Adi Mechanical managing director Stephen Forrester said: “In many ways, we pre-empted what was already at play in the manufacturing sector, just prior to the pandemic.
“Lack of skilled in-house engineering support has been amiss for a while for manufacturing firms, particularly given the well-publicised skills gap in the sector. “Businesses that can therefore move plant and equipment, fabricate and install interconnecting pipework, service, commission and maintain plant and machinery, with no breaks in the supply chain, are in hot demand in an age when many others are subcontracting out such work. “What we can provide is expertise – the skills they need at a time when many manufacturers are now looking to expand or restart those large-scale CAPEX (capital expenditure) projects that were put on hold at the beginning of the pandemic. “Similarly, those scaling down operations have needed hands-on engineering that can complete works efficiently and quickly. “We’re delighted to be able to offer such assistance, backed up by the wider capabilities of the Adi Mechanical and Group workforce.” The Adi Group is a multi-disciplinary engineering firm, spanning markets including aerospace, defence, automotive, biosciences, food and beverage, manufacturing and petrochemical.
Stephen Forrester
Hydraulics firm appoints new MD
American-owned hydraulics specialist HydraForce has appointed a new managing director in Birmingham.
The firm, which makes highperformance hydraulic valves and manifold systems, has appointed Jon Bradley (pictured), who was previously director of global quality excellence.
Mr Bradley started his career as an engineering apprentice, before embarking on a 30year stint in manufacturing, covering the aerospace, automotive and off road hydraulic sectors, and based in both the UK and the USA.
He said: “I am extremely honoured to be asked to follow in the footsteps of former managing directors Tony Brown and Peter Macdonald, extending the founder, Jim Brizzolara’s HydraForce legacy.
“HydraForce is a fantastic company to work for, with a great workforce, and I will continue to work with the team to deliver the benefits that my predecessors have put in place, carrying them out in the spirit of HydraForce.”
Tim Twitty, vice-president of operations at HydraForce, said: “We extend our gratitude and best wishes to our former MD, Tony Brown, in his future endeavours and welcome Jon Bradley in his new position as managing director.”
HydraForce Ltd, based at Aston Hall Road, Aston, employs around 700 staff at present and is the American owned business’ European headquarters.
