Manufacturing sector provides timely boost to UK economy
A strong finish to the year within the manufacturing sector has raised hopes that the industry could be poised to make a sustained and positive contribution to the UK economy.
A relatively disappointing 2012 for the sector was rescued by a successful final couple of months, during which demand for export to countries outside of the EU increased.
The indexes for production (1.1%) and manufacturing (1.6%) both increased between November and December 2012, according to figures from the Office for National Statistics (ONS).
The manufacturing boost was due to demand rising in a number of areas, including the manufacture of machinery (8%) and chemicals/chemical products (5.6%).
EU links falter
The industry was also helped by increased demand from a number of new sources. Countries within the European Union (EU) were the primary export destinations for the UK manufacturing sector up until the latter part of last year.
However, the recent financial uncertainty that has taken hold within the eurozone has caused previously strong trade links to stutter. Manufacturing exports to other EU countries fell by 4.8% in the last 2 months of 2012.
As a result, a number of manufacturing companies were left with little choice but to seek new trade links. Manufacturing exports to non-EU countries increased by 11.7% during the same period, which was a welcome boost to UK manufacturing companies who may have been wondering what the future held for them.
Numerous government figures have made frequent reference to the importance of a strong manufacturing sector if the UK economy is to recover sufficiently in the near future. These ONS figures suggest that things may be moving in the right direction.
Businesses which are not performing as successfully as they may wish could potentially benefit from seeking advice sooner rather than later.
A business insolvency specialist can assist business leaders and financial directors to deliver pro-active solutions for their business, as well as advising them on how to adapt to the ever-changing economic landscape in 2013.