The budget announced that the UK was the second-fastest growing economy in the G7 in 2016 and despite the Brexit vote, the UK economy, according to the Office of National Statistics (ONS), ended 2016 on a strong note as manufacturing output jumped 2.1% in December, much faster than economists forecast.
This acceleration in manufacturing growth has been mirrored and excelled by Redruth based European Springs & Pressings who have seen their order books surge post-Brexit with further encouragement of long-term gains with today’s earlier budget announcements.
End of year results saw the spring manufacturer at Treleigh Industrial site post strong performance results with a £7m turnover in 2016, up by 15% on 2015.
Michael Gibbs, Managing Director says: “UK manufacturing is going through tumultuous times. On the one hand there is significant investment with multi-million pound facility expansions from Boeing and McLaren and on the other, Britain’s car manufacturers are suggesting instability.
“We have seen incredible growth across our business, witnessing an increase of 17% in our automotive sector with a high proportion of our suspension springs being used in the UK. The budget’s review of oil industry taxation can only have a positive impact on multiple suppliers to the oil and gas industry and is a welcomed statement for the industrial side of our business.”
“We’ve purposefully invested over £1.3m in new machinery in the past year to fulfil growing demand and secure UK production, where we had previously sub-contracted some work out to our partner factory in Sweden.
“Our team has expanded to 51 staff from 43 in the last 12 months but we have struggled recruiting. The budget’s investment in a new T-level system and £300m assigned to support STEM subjects will hopefully secure and encourage badly needed skills required within Cornwall’s growing engineering industry.”
“We are now not only recruiting more staff but are also actively looking to acquire more space, having recently extended and relocated from our former Indian Queens site in 2013.”
Gibbs concludes: “Our current trajectory and long term strategies, boosted by the Government’s focus on the UK’s industrial strategy, forecast continual investment, recruitment and expansion in Cornwall, further adding to the £800m per annum contributed to the county’s GVA by Cornwall’s manufacturers.”