SOUTH East manufacturers are seeing strong growth prospects as economies continue to open up and the economic recovery strengthens, according to a survey.

After a 10 per cent drop in output last year, the sector is set to regain a significant amount of ground this year and recover the full loss by the end of 2022, according to the research by

Make UK and business advisory firm BDO.

But Make UK said the supply chain disruption and labour shortages could hamper this improving picture in the final quarter of the year.

Both UK orders and total orders were very strong for South East companies with a total order balance of plus 63 per cent, which is exceptional by historical standards. Output improved to a level above the UK average, with the business confidence indicator the highest of any UK region. 

Investment intentions have also increased substantially to a balance of plus 51 per cent, the highest of any UK region, while companies stepped up recruitment to meet demand.

Jim Davison, region director for Make UK in the South East, said: “South East companies are seeing buoyant growth conditions as prospects continue to accelerate for manufacturers as economies at home and abroad continue to open up. However, supply chain shortages and the rapidly escalating increase in shipping costs are threatening to put roadblocks on the road to faster growth despite the current optimism.”

Mark Hutton, head of manufacturing for BDO in the South East, said: “Manufacturers have proved their resilience over and over again, but we know big challenges remain that will continue to stress-test South East makers for the remainder of the year.

“However, such impressive order and output balances are having a hugely positive impact on investment and employment intentions. The investment boost we have witnessed is indicative of an industry that is confident of a future worth investing in.”