As a result, firms expect production to fall over the coming quarter, according to the CBI’s latest monthly industrial trends survey.

Of the 434 manufacturers who responded, 18% reported total order books to be above normal, while 41% said that they were below.

The resulting survey balance of -23% is the lowest since October 2010 (-28%).

Export demand also remained depressed with 44% saying export order books were below normal expectations.

In line with weakened order books, manufacturers expect to reduce production over the next three months, the research found.

Ian McCafferty, CBI chief economic adviser, said: “Conditions in the UK manufacturing sector remain difficult, with demand both at home and abroad subdued. The weaker export performance no doubt reflects on-going instability in the Euro area, our biggest export market, and its knock-on impact on prospects for the real economy.

“A clear and orderly resolution to the crisis remains essential to prevent further adverse effects on both UK manufacturing and the wider economy, and to lift business confidence.”

Published with permission of TheBusinessDesk.com

The purchase of the two names from Unilever by the Leeds-based business is expected to boost its annual gross sales to around £150m.

It follows the recent acquisition of salad crouton brand La Rochelle and the re-introduction of the Campbell’s soup brand to British supermarket shelves by Symington’s.

Other brands in the Symington’s growing portfolio including Ainsley Harriott, Aunt Bessie’s, Mugshots, James Martin and Golden Wonder.

David Salkeld, chief executive at Symington’s, said: “The Unilever acquisition is a significant step for our business and we are delighted to have completed the deal.

“We have a proven track record of taking on heritage brands, rejuvenating them and introducing new product developments.

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More than half of exporting-manufacturers are experiencing an increase in overseas sales and orders, according to the survey, and the majority of the sector’s growth is coming from international trade. Service sector exporters reported improvements on the previous quarter’s results, with 36% saying that overseas sales have increased.

With only 23% of service providers selling overseas – compared to 57% of manufacturers – there is concern that the sector’s dependency on a fragile UK market will result in it experiencing slow or stagnant growth. The weak advance orders (+3% net increase) reported by the sector suggest that this weak performance is likely to continue into the next quarter.

Despite the fragile UK market, business confidence remains high. Manufacturers are more optimistic than services with 70% expecting their turnover to increase over the next 12 months compared to 58%, which is associated to the sector’s strong overseas performance.

Manufacturers are also leading the way in terms of job creation with one third increasing their workforce compared to one fifth of service providers.

To read the full report, visit>>> http://www.yourchamber.org.uk/images/stories/pdfs/QESReport_QTR2_2011.pdf

Cook says the new investment will increase capacity in volume and breadth and also enhance the group’s ability to recycle materials. He plans to expand the workforce from 700 to 850 with new jobs for welders, machinists, pattern makers, engineers, moulders and finishing operators at his three sites in Sheffield and Leeds.

Growth is being driven by high demand from the international oil and gas, transport and construction markets as the global economy bounces back after the financial crisis and customers return to producers in the developed world. The low value of the pound is also helping, says Cook, adding that the company intends to ‘move with the times’, investing in people and plant to develop world class manufacturing facilities.

Read full interview>>> Global demand sees William Cook plan £5m site investment

MAS Y&H provides hands-on advice and support to manufacturing businesses to improve productivity and efficiency. It is jointly funded by Yorkshire Forward and the European Regional Development Fund (ERDF) and is managed by YFM Business Development, managed by YFM Business Development (YFM BD), part of the enterprise development company GLE Group.

Last October, the future of the MAS service in the region was thrown into disarray when Yorkshire Forward withdrew its funding for any new projects.

Since then, MAS Y&H has continued to operate although, in the words of Robin Watson, MAS regional director: “it has been an extremely frustrating period as we have not been able to provide the in-depth expert advice manufacturers are seeking.”

Robin and his team have succeeded in securing a further £1m funding which gives MAS Y&H the ‘green light’ to carry on operating until the end of the year. The funding will allow…

Watson said: “The MAS service can lead to real and lasting benefits for businesses, including safeguarding and creating new jobs and increasing turnover and profitability by helping to improve competitiveness, enabling new business to be won. Now we have the funding in place, one of our priorities will be to advise on operational issues including introducing ‘Lean’ techniques and revising factory processes and layout “

He added: “From December, the MAS service will be delivered on a national basis. The GLE team are seeking to play a role in the new contract so that we can continue to use our experience and knowledge of manufacturing improvement techniques, which we have built up over the past eight years of delivering the MAS service in Yorkshire & Humber.”

For more information about MAS visit: www.mas-yh.co.uk

A £1m production facility is being created by Marpak Extrusions, the Leeds-based industrial packaging business as it looks to to capitalise on an increase in exports. The new 10,000 sq ft factory, close to the Gelderd Business Park in Leeds, will create an initial 12 new jobs for £10m turnover company Marpak Extrusions.

The news follows a string of major investments by Leeds manufacturers including the new £1.2 million Siemens factory at Navigation Park, Stourton, a £0.5 million training facility developed by Airedale International and a £1million investment in new production lines and processes by building sealants and chemicals firm Everbuild.

According to TheBusinessDesk.com, Marpak’s new production facility has been backed from Yorkshire Bank’s Leeds Financial Solutions Centre as part of its Investing for Growth Initiative.

Family-business Marpak, which was founded in 1980 by managing director, Richard Gibson, specialises in the extrusion of polythene into sheets and bags for pallet protection in the transportation of a wide range of products including glass, furniture and building materials.

Mr Gibson said: “As a specialist manufacturer we have always traded successfully throughout the UK. We started exporting three years ago to capitalise on the low value of the pound and have built up strong demand in Egypt, France, Denmark, Sweden, Holland,  Germany, and Poland.”

The new facility will open in July. The company’s existing production base in Westland Place, Leeds, is at maximum capacity, while demand for Marpak’s products throughout Europe and the Middle East is growing. Export sales have risen by 60% in the last 12 months.

“The new factory will enable us to increase our production capacity by 8,000 tonnes a year but this initiative is not just about exporting. Some UK businesses acquire extruded polythene from European importers and we also aim to attack this market which, if successful, will help keep more business within Britain.”

“With so many different providers, it can be a minefield for busy business owners and managers. We want to simplify this and make it easy for SMEs to find out where to access finance and decide which option is right fdor their business.”

The new guide includes information about support and financing for young businesses through the Business Enterprise Fund, private equity, venture capital and commercial bank loans. It also describes how money can be raised through the Alternative Investment Market (AIM) and the Enterprise Capital Fund, which combines government funding and private sector investment.

Publication of the guide follows a survey of chamber members which revealed 71% of businesses believe that the biggest barrier to growth and innovation is a lack of sufficient finance opportunities.

“This is a must read document for any business and can help take your business to the next stage of success,” says Williamson.

“Never before has there been more reason to buy British and from within the region. The growth of the economy and future job creation could be given a massive boost by even a small increase in the percentage of goods sourced here,” says Andrew Palmer, regional director of the CBI.

Experts argue that the weak pound, high freight charges and carbon reduction incentives make shortening supply chains by sourcing components locally makes sound business sense.

Gary Williamson, chief executive of Leeds, York and North Yorkshire Chamber of Commerce commented:  “While we can never be self-sufficient, we tend to forget that businesses here manufacture a huge range of products and if we all look to source closer to home we will create jobs, reduce carbon emissions and keep more of our money flowing around the UK economy.”

David Raistrick, national head of manufacturing, Deloitte, adds:  “With the UK the sixth largest manufacturing base in the world it has never made more sense for Yorkshire firms to buy locally.”

Read the full story here

British manufacturing continues to report strong trading conditions with indicators for output remaining at record levels for the third quarter in succession, according to the fourth quarter ‘Manufacturing Outlook’ survey published by the Engineering Employers’ Federation (EEF).

Strong performance continues to be broad-based across all sectors and regions. It has been underpinned by the robust demand coming from overseas markets, which have made a large contribution to export growth since the recovery began.

The EEF forecasts that engineering and manufacturing will continue to outperform the rest of the UK economy in 2011.

JBC agrees expansion plan with Lloyds TSB
The positive outlook is supported locally by news that Leeds engineering contractor JBC Industrial Services aims to increase turnover next year by 25 per cent to £10m after agreeing new working capital facilities with Lloyds TSB Commercial. JBC switched its banking to Lloyds TSB to support its continued expansion.

The company, founded in 1978, provides a range of energy-based services for industrial clients. It employs 75 people and has taken on new ten staff this year.

As well as its base in Morley, JBC also has premises in Hull, Warrington, Newark and Southampton and carries out work across the UK, Europe and worldwide with work undertaken in Australia, Belgium and Dubai.

Managing director Jamie Bashall said: “There has been a trend, particularly in the NHS Trusts, towards replacing existing boilers with new, more efficient heat and power systems and this has led to an increase in demand for our services.

“We now have a full order book that takes us into 2012, and one of our main aims will be to expand the amount of work we do in London and the Home Counties, as we see these as real growth areas for the company.”

Call to double growth rate for UK manufacturing
The plans set out by the CBI include calls for manufacturing to double the growth rate for UK manufacturing exports and to be innovative in research, design and creativity.

Andrew Palmer, CBI director for Yorkshire and the Humber, said: “UK manufacturing is in many ways the unsung hero of our economy. Big productivity gains in the past ten years have made it leaner than ever before, and it’s now well placed to lead the country’s economic recovery.

“To achieve this, however, the Government must act fast. It should build on the sector’s strengths, work with business to harness its innovation, and create a tax and regulatory environment that helps UK manufacturers drive up growth in productivity and exports.”