North-East manufacturing is providing a ray of sunshine

After a difficult time for the industry during the recession it is now going to drive forward the recovery.

This is happening now, with exports the region’s biggest strength at present, and is to continue in the future with the North-East’s growing expertise in low-carbon industries.

Manufacturing is particularly important to this region, accounting for 19 per cent of the North-East’s GVA, compared to 12 or 13 per cent elsewhere.

Tony Sarginson, external affairs specialist at manufacturers organisation EEF, said: “It is an important part of our economy, more than any other part of the country.”

The North East Chamber of Commerce’s (NECC), quarterly business barometer, released last week, showed export sales and orders, goods produced by manufacturers, were significantly up over the past quarter.

It comes as the body, which represents 4,500 members in the region, pointed to nervousness particularly affecting the service sector.

Ross Smith, head of policy and research at the NECC, said: “Our survey showed the manufacturing industry performing far better than services and playing a leading role in powering the North- East recovery ahead, so there couldn’t be a clearer illustration of why manufacturing is crucial to the economic success of the North-East.”

Manufacturing obviously creates goods to export, a recent strength for the North- East economy, particularly when coupled with the weak pound.

Mr Smith said: “In addition, it is clear for the UK as a whole that export success will be crucial to the recovery in the next few years.

“The North-East is the only region with a consistent postive balance of trade, primarily because of the strength of our manufacturing industries.

“We are going to need that to continue over the next few years, not only for this region, but also for UK plc.”

Mr Sarginson, whose organisation represents about 600 manufacturers in the North-East, said the industry was vital to rebalance the economy.

He said: “It is important to spread your risk as an economy so you are not relying on one sector, such as finance.

“Making things and exporting things is a way of rebalancing our economy.

“Manufacturing is where you export and if the economy is going to recover it is through exporting, which companies such as Nissan and the process industries on Teesside are already doing.”

Manufacturing is our present and future. In August the new 4x4 hatchback Juke, which will preserve 1,000 jobs at Nissan’s plant in Sunderland and up to 2,000 more in the supply chain, replaced the Micra on the production line.

It comes after the success of the Qashqai, also produced on Wearside, was credited with leading a 17 per cent increase in the company’s new car sales last year.

In March this year it was announced the Leaf electric car will also be built at the plant from 2013, with lithium-ion electric vehicle batteries produced at a purpose-built factory on Wearside from 2012.

The future is also looking brighter for our steel industry despite a torrid 18 months.

Thai firm Sahaviriya Steel Industries (SSI) looks poised to buy Tata Steel’s Teesside Cast Products (TCP) plant, at Redcar, which was mothballed in February.

In addition Tata Steel, formerly Corus, announced in August that it planned to create 220 jobs at a £31.5m factory producing offshore wind turbine foundations near Redcar.

In addition, about 400 jobs are expected to be created by TAG Energy Solutions plans to build a factory, also manufacturing offshore wind turbine foundations, on the banks of the River Tees.

Romag, near Consett, continues to grow from a traditional manufacturer of bullet and blast resistant glass to the creator of breakthrough products such as solar panels and a solar-powered electric vehicle-charging system.

And while continuing to produce traditional products, Thorn Lighting in Spennymoor, is advancing solid state lighting, which could see a thin plastic sheet able to emit as much light as a conventional bulb. The region is also poised to hear if it will be given the chance to build the country’s next generation of high-speed trains.

The Government could announce a decision on the Intercity Express Programme at any time.

If the contract goes to preferred bidder Hitachi, the Japanese manufacturer has indicated it would build an assembly plant in Newton Aycliffe, creating 800 jobs directly and a further 8,000 in the supply chain.

Mr Sarginson said: “Manufacturing is where the jobs are going to be.

“Battery plants, offshore wind turbines, electric vehicles, all these are the new industries that are coming along and we need the skilled labour to support the new jobs.”

Mr Sarginson said he had never known manufacturers in the region as optimistic as they were at present for quite some time.

He said: “While the recovery is still fragile and we have to be extremely careful, at the same time we have bounced back.”