Yorkshire and Humber now boasts more than 11,900 manufacturing firms – up by 4% on a year ago, according to a report.
And manufacturing accounts for 16% of the region’s total output – the third highest proportion in the UK – while employing 285,000 people or 10.5% of the entire Yorkshire and Humber workforce.
The report by manufacturers’ organisation the EEF and accountancy firm BDO also showed that business confidence among those companies has slumped following the Brexit vote, although the region has clung onto its second place position in the UK business confidence rankings.
Some 7% of local manufacturers said they were likely to “immediately” review the location of their operations in the wake of the EU referendum verdict while 13% said they same about their overseas investments.
But manufacturers in the region also saw more opportunities arising from Brexit than their peers elsewhere.
The annual report, Regional Manufacturing Outlook, said manufacturing in Yorkshire &Humber had made some strong strides over the last year – with the number of firms growing and total orders continuing to trend above the UK average.
Last month’s Brexit vote hit manufacturers’ business confidence hard with confidence in the region declining significantly. But Yorkshire and Humber maintained its number two spot in the UK rankings.
The report highlighted food and drink, metals and rubber and plastics as the key manufacturing sectors.
It also showed that manufacturing employment had grown by 9.6% between 2010 and 2016 – more than double the average growth rate in the UK as a whole – with 285,000 people now employed in the sector.
Andy Tuscher, EEF’s Yorkshire and Humber region director, said: “Despite some challenging times, manufacturing in our region remains a force to be reckoned with. This last year shows firms getting back into their stride. But the referendum outcome provided a jolt and it’s clear that we’re now on a new path with fresh challenges ahead.
“Exchange rate volatility, political uncertainty and the danger of increased costs are already causing concern in the region and business confidence is in short supply.
“But our sector is nothing if not dynamic, determined and resilient. With a solid business environment, supportive policies and the right outcome from Brexit negotiations, manufacturers in this region should be able to overcome the risks, reap future growth rewards and get their business confidence back on track.”
Jason Whitworth, corporate finance partner and head of manufacturing at BDO LLP in Yorkshire and Humberside, said: “Following the Brexit vote last month, business confidence has fallen from 6.4 (out of 10) to 5.4.
“However, this should not deter manufacturers – performance over the last 12 months in Yorkshire and Humberside has been promising with increases in orders. Businesses must remain engaged and adaptable to continue to trade profitably through the changes in the short term and make the most of the opportunities they may offer.”
