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It's predicted there will be more redundancies in the manufacturing industry in the South West despite company bosses saying they're seeing improvements in output.

Optimism among manufacturers in the south west is on the up, thanks to improving output and signs of growing order books.

The latest Manufacturing Outlook report, issued by EEF, the manufacturers' organisation, and BDO LLP, shows that regional manufacturers are feeling at their most confident in over two years, with half predicting further improvements in trading conditions over the next three months.

Comments Clive Turner, Head of External Affairs for the EEF South West Region: "The survey lends credence to the view that this is going to be a slow-burn recovery, with manufacturers reporting steady total output and less volatility in employment."

The EEF survey shows that while total output trends in the region were on a par with the previous quarter, prices, margins and capital expenditure indicators were all stronger, pointing to slowly improving trading conditions.

"These figures show that we have to be cautious about predicting a strong rebound, as a number of factors could knock growth off track, " says Clive Turner. "The recovery depends on world markets continuing to grow, and the financial system's ability to provide finance is yet to be fully tested.
Investment plans are also likely to remain on hold until manufacturers get a better sense of how a new government plans to repair the public finances."

Companies in the south west are, however, optimistic about the future - with 50% anticipating better output and increasing order books over the next three months.

But despite the positive feedback from manufacturers Mr Turner said jobs in Bristol and the surrounding region are still at risk: "It's gonna be a long slow process, and of course we're going to still see a number of redundancies in the South West.  It's a sort of follow the curve process I'm afraid. But looking ahead and with that confidence that enables manufacturers to possible plan further and therefore invest."

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