Manufacturing output growth nears record level

Figures for February 2014 show manufacturing output grew at a near-record level, rivalling the strongest months since data was first collected in 1975.

The Confederation of British Industry surveys 380 manufacturers for the Industrial Trends Survey, and found 16 of 17 sectors within the industry expect their output to grow in the coming quarter.

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A total of 41% said their output is up in February compared with the previous month, while just 17% saw output decrease over the month – a net balance of +24%.

Those struggling to keep up with demand could find global sourcing of components gives their operations a much-needed injection of pace.

Global sourcing allows high-quality components to be created wherever the required skillset exists – even overseas – usually at a much lower cost than would be required to achieve the same quality from self-production.

With the current growth in output, more UK manufacturers may want to look to this option, with the knowledge that they should have greater investment capital available over the remainder of this year.

CBI head of economic analysis Anna Leach said: “The manufacturing sector shows continued signs of improvement, with demand high and steady, and output growing strongly.

“Growth is increasingly broad-based and firms’ growth expectations are the highest for several months.

“As the UK and global economies continue to strengthen over the coming months, we expect conditions to continue to improve for UK manufacturers and to increasingly feed through to business investment.”

For help with outsourcing a portion of your manufacturing including areas such as engineered components, casting or iron casting or steel castings contact Darian Global Sourcing to find out more.