More manufacturers in the Black Country are optimistic about prospects for the year, according to a new survey.
The final quarterly economic survey of 2010 from the Black Country Chamber of Commerce shows 40 per cent this quarter expect UK sales to rise, compared to 34 per cent in the third quarter.
President Mike Dell said this indicates that the UK economy now appears sufficiently tough enough to avoid a double-dip recession, and there are realistic hopes that policies aimed at rebalancing the economy towards the private sector will improve growth prospects in the medium-term.
He said: “The manufacturing sector does appear to be optimistic about the improvement in the domestic market, with 53 per cent expecting UK orders to increase.
"This is linked to anecdotal evidence that some elements of the construction and logistics sectors have been picking up over the last quarter of 2010 and these are key indicators of economic activity.
“The export market for manufacturers has also remained fairly steady since last quarter, although there is some caution that there may be a dip early in the New Year, with 33 per cent of manufacturers expecting both overseas sales and orders to decrease.
“The labour market locally for manufacturers has become more robust over the last part of the year. 85 per cent of firms have reported that employee numbers have actually increased, or remained constant during the fourth quarter and only eight per cent expect any decrease in headcount over the next three months, which is extremely positive.”
Mr Dell said recruitment difficulties remain a problem for companies in the region. Of the 45 per cent of firms attempting to recruit over the last quarter, 56 per cent experienced difficulties in finding the right skills to fit their vacancies.
The majority of these vacancies (59 per cent) were for skilled manual and technical staff and 31 per cent were for professional and managerial roles.
Cash flow continues to be of concern for the manufacturing sector. There has been no change this quarter in the number of firms reporting a worsening of cash flow – 29 per cent.
