10/09/2010
The Engineering Employers' Federation (EEF) has reported a remarkable resurgence by the British manufacturing industry, according to The Independent.
Following the worst slump in three-quarters of a century, the UK's industrial recovery continues to pick up, with exports providing an important boost to the recovery. Investment also seems to be picking up quicker than previous upswings.
The survey reveals that the recovery, which started at the end of 2009, saw output and order balances hit record levels for the second consecutive quarter. The figures are the highest ever recorded, since the survey began in 1995.
The EEF says that British manufacturers are reporting buoyant trading conditions thanks to the rising demand in overseas markets. This hints at "good prospects for growth in 2010," they claim. The boost is driven by Britain's export markets, which have grown by 30% as the depreciation of the pound has had a benefit on trade.
SMEs who are keeping an eye on the economic recovery could be encouraged to export goods, or diversify the products already being exported, in a bid to claim part of this success story. Through invoice factoring, invoice discounting and other methods of raising cash, businesses can be part of the pack who are reaping the benefits of the economic recovery by selling to a growing market.
HM Revenue and Custom's 'Time to Pay' policy has also been credited for the boost, as the scheme allows businesses more time to pay tax.
The news has led the EEF to predict that the UK economy will grow by 1.5% in 2010 and 2.1% in 2011.
Laura Nineham