The general consensus among those in the industry is optimistic, with many retailers reporting buoyant sales and some even going as far as to cautiously breathe a sigh of relief.<\/p>\n
This positive attitude is reflected in the manufacturing sector as figures released by the Northern Ireland Statistics and Research Agency in December 2017 revealed total sales by companies in Northern Ireland rose by 2.7 per cent to \u00a368.9bn for the year 2016-17.<\/p>\n
Sales within NI increased by \u00a3829m and are at the highest level since the survey began in 2011, while external sales rose by 4.2 per cent and accounted for over a third of total sales in 2016.<\/p>\n
Stephen Kelly, chief executive for Manufacturing NI told Neighbourhood Retailer that he believes the manufacturing industry has weathered the worst of the economic downturn, and is finally coming out the other side after a few difficult years.<\/p>\n
\u201cStatistics show record international exports, which has been helped by the change in value of sterling after the referendum.<\/p>\n
\u201cAlthough these figures represent sales from the previous year, we can expect a similarly positive outcome when statistics are released at the end of 2018, as feedback from manufacturers shows that 2017 has been just as busy as the previous twelve months.\u201d<\/p>\n
And, it\u2019s not just increased trade that the manufacturing industry has to be proud of, as Stephen reports all time high numbers of employment in the sector.<\/p>\n
\u201cThe general public\u2019s perception of manufacturing is changing,\u201d said Stephen. \u201cLines of repetitive tasks are a thing of the past in most companies and the \u2018clocking in, and clocking out\u2019 culture is also very much a myth.<\/p>\n
\u201cThe industry is employing skilled workers to operate complex computer programs and more people are starting believe that a job in the manufacturing industry is a good value career.\u201d<\/p>\n
Although, Stephen acknowledges that recruitment in the sector is not without its challenges.\u00a0 Like many other industries, manufacturing is not immune to the ever expanding skills gap whereby there are not enough qualified workers to fill valuable roles. He believes this issue can be tackled by promoting apprenticeships to school leavers.<\/p>\n
\u201cIf you ask 100 parents what their ambitions for their children are, many would reply with careers such as doctor and lawyer. However, not everyone is suited to these paths. The reality is that getting into a good apprenticeship means that young people can earn and learn at the same time without accruing years of student debt.\u201d<\/p>\n
The Purchasing Managers\u2019 Index, an indicator of economic health in the manufacturing sector, reached a four year high of 58.2 in November 2017.<\/p>\n
Stephen said: \u201cAnything over 50 is positive, but November was a promising indicator of solvency. Our firms are confirming that they are continuing to be busy with orders lined up for the future.\u201d<\/p>\n
However, Stephen reports a slight downturn in the construction industry, in particular the transportation of materials from NI to Great Britain.<\/p>\n
\u201cEvery year a large amount of steel and concrete is exported to Great Britain, as local firms win over buyers in the UK with high quality products and competitive prices. Recently construction firms have been reporting that bigger investments have been going to businesses on the mainland, which I believe reflects the mood and sentiment on the mainland in regards to Brexit.\u201d<\/p>\n
It doesn\u2019t matter which side of the Brexit debate you straddle, everyone can agree that a good Brexit outcome is key to maintaining and growing the economy.<\/p>\n
\u201cA small amount of manufacturers export, but all manufacturers import making it even more imperative that the Government negotiates a good deal for the people of Northern Ireland.<\/p>\n
\u201cIn a survey conducted by Manufacturing NI at the beginning of December, half of firms had made minimal changes or no plans to prepare for Brexit. More worryingly, more than a third of those surveyed are planning on shifting production outside of the UK.<\/p>\n
\u201cThree out of four manufacturers said that Brexit will have a negative impact on their business regardless of a good, bad, or no deal outcome.\u201d<\/p>\n
The manufacturing industry relies on investment, but uncertainty around Brexit means that there is a lack of confidence required for significant investment to take place.<\/p>\n
\u201cInvesting in the manufacturing industry isn\u2019t like investing in any other industry,\u201d said Stephen. \u201cInvestment can take 20-30 years to yield results, and there isn\u2019t enough confidence to pour money into new markets, buildings, and staff at the moment.\u201d<\/p>\n
In 2018, Manufacturing NI will be supporting their members by encouraging the government to negotiate a good Brexit deal for trade in Northern Ireland, as well as campaigning for lower business rates to allow the sector to grow and gain momentum again.<\/p>\n
\u201cWe need the Executive back up and running to keep business rates down,\u201d Stephen said.<\/p>\n
Regardless of a Brexit outcome, the manufacturing trade in Northern Ireland has shown itself to be resilient industry and Stephen believes our leaders are quick and capable of making the best of it.<\/p>\n
He said: \u201cThis is the time to be looking at our firms who are sitting with 50 employees who really could have 250 employees in a few years. We need to support our rising stars to be internationally successful.<\/p>\n
\u201cIn Northern Ireland we have a real talent for making and selling things \u2013 it is part of our DNA and that\u2019s why manufacturing represents a bigger part of our economy than anywhere else in the UK.<\/p>\n
\u201cRecently there have been a number of local firms purchased by international powerhouses China and America. Home grown firms are taking on the world and are winning – a pattern that Manufacturing NI hopes to see continue into 2018 and beyond.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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