Tobies Beteiligungsgesellschaft mbH
According to a survey by BDO and accountancy company Make UK, British manufacturers are continuing their recovery in the second quarter of the year, with growth being led by the aerospace and electronics industries.
The results of the Make UK/BDO Q2 Manufacturing Outlook survey reveal a persistently positive picture, with the growth being driven in particular by strong demand in the Other Transport and Electronic sectors. The Other Transport sector's output balance, which is primarily composed of aerospace products, is particularly strong at +82%.
This is stated to indicate the aerospace industry's ongoing recovery, which has been shown in the rise in passenger miles and a number of sizable new aircraft orders over the past year.
This is stated to indicate the aerospace industry's ongoing recovery, which has been shown in the rise in passenger miles and a number of sizable new aircraft orders over the past year. As businesses engage in digitalization and additional capacity to address the labor problem, strong balances for electronics are being ingrained.
The South East, where electronics is the second-largest industrial sector, is now benefiting from these investments thanks to continually robust financial sheets.
Although the situation is still far better than the considerable contraction projected at the end of last year and in Q1, Make UK is still predicting a modest contraction for manufacturing in 2023.
"Manufacturers are seeing a gradually improving picture, but the word 'gradually' is doing a lot of heavy lifting," said James Brougham, Senior Economist at Make UK. However, following the political and economic unrest of the previous few years, when they were forced to spend the majority of their time battling fires, businesses are at least experiencing a relative period of stability.
However, significant obstacles still exist, and development prospects will be at best mediocre as long as there is no comprehensive industrial strategy.
