Crucial role of manufacturing in South East economy highlighted

Manufacturing remains vital to the economic performance of the South East & London, accounting for almost 5 per cent of the region’s economy.

This is according to a recent report from manufacturer’s organisation Make UK and accountancy and business advisory firm BDO LLP, which analysed the overall state of industry in the region over the last 12 months.

The report makes for optimistic reading, showing the South East of England has recovered strongly from the worst stages of the pandemic. The performance of the food and drink sector (the largest sub-sector in the region) is a particular driver following hospitality fully re-opening at the start of the year.

Jim Davison, Region Director for Make UK in the South East, said: ”Manufacturing remains a key component of the South East economy with its concentration of high value sectors that are at the forefront of driving innovation and providing highly-skilled jobs.

“Government can help this process by supporting efforts to grow trade, especially among SMEs. The first step towards this must be resetting the trade relationship with the EU.”

Read more - BDO: Business output growth slows amid labour shortages and rising energy prices

The South East’s second and third largest sectors, electronics and pharmaceuticals, have both received higher than average investment when compared to other manufacturing sectors, driving an especially strong investment performance over the last 12 months.

In terms of exports, the South East remains strong despite its share of exports to the EU (47 per cent) being marginally lower than the UK average of 49 per cent. Asia and Oceania are the next largest destinations for South East goods, accounting for one-fifth of exports, followed by North America accounting for 18 per cent.

Mark Hutton, Head of Manufacturing at BDO in the South East, said: “Manufacturers across the region support hundreds of thousands of jobs and make a significant contribution to the local economy.

“The region continues to be a strong export performer. The ongoing reliance on EU export markets suggests that local businesses have done a good job in adapting to new post-Brexit rules, but ongoing Government support may well be required, particularly for firms at the smaller end of the spectrum.

“It’s vitally important for the region’s exporters that good trading relationships with our European neighbours are maintained to ensure that trade remains as frictionless as possible. We also hope to see further progress on free trade deals which could offer new and exciting opportunities for businesses across the South East.”

Read more - Make UK/BDO Survey: South East companies see strong start