Graham Dewhurst, MTA director general, says: “It’s good news that confidence is up and that our members are looking forward to the future. It’s reassuring to see the indicators continue to point in the right direction – it’s also reassuring to see that growth is on a sustainable pattern not a rollercoaster. 2013 has been a strong year for the industry with order and sales at good levels throughout. What is also good news is that we can now see a clear trend in employment with companies’ workforces growing at an annualised 6%.”   

The overall position of UK manufacturing output does vary according to the sector. It is true that while aerospace and automotive are still growing, sectors such as construction products still have some ground to make up.  Engineering/capital goods continue to outperform manufacturing as a whole by a considerable margin. The growth of expenditure on capital goods, such as Manufacturing Technology, shows that employers are looking to the future and making the strategic investment decisions that will ultimately boost output growth. 

The positive overall trend for UK manufacturing is reflected in the Office for National Statistics (ONS) 3rd Quarter 2013 figures which show that manufacturing output as a whole increased by 0.9% compared to the 2nd quarter of the year. These figures correspond with readings from the Purchasing Managers Index over recent months. Output for the capital (or investment) goods industries increased by 1.8% compared to the previous quarter – twice the rate for manufacturing as a whole – and was 2.6% higher than a year ago, making it the fastest growing of the major sub-groups within manufacturing.

The automotive sector had a good 3rd Quarter with output only a fraction below its pre-recession peak level, which was reached in the 1st Quarter of 2008. Aerospace output has also continued to grow strongly and is now 13.7% higher than it was a year ago. The other two sectors that the MTA follows, namely machinery and metal products, both saw an improvement in output in the 3rd Quarter of 2013, but their levels remain relatively weak compared with the pre-recession period.

UK exports of machine tools over the 3rd Quarter 2013 saw an increase of 6% on the previous quarter. The figures just released by HM Revenue & Customs show the total value of machine tools exports for 2013 in the first three quarters was £378.3 million, 0.9% higher than for the first nine months of 2012.  The top three exports markets in the 3rd Quarter of 2013 were China (£22.9 million), the USA (£22.1 million) and Germany (£15.8 million).  

The confidence expressed by the manufacturing technologies sector augers well for the prospects for UK manufacturing overall. Looking to the future Graham Dewhurst, says: “If the Manufacturing Technologies Sector is doing well then it means that UK manufacturing is investing in its future. But we need to be sure that continues into the medium and long term. The UK is a great place to manufacture, but it could be better still. We now have a competitive tax regime in place for R&D, but Government needs to capitalise on that by making the other side of the investment coin – plant and equipment – globally competitive too. That can be done through bringing Capital Allowances up to international ‘best in class’ standards”.