MANUFACTURERS in the region are reporting strong growth prospects as the economic recovery builds, according to a new survey.

Research by manufacturers’ organisation Make UK and business advisory firm BDO shows that following a “brutal” decline in output last year, the sector is set to recover a “significant” amount of that loss.

But there is a warning that supply chain disruption and some labour shortages could hamper the improving picture in the final quarter of the year.

June Smith, regional director for Make UK, said: “Yorkshire and Humber companies are seeing buoyant growth conditions, with prospects continuing to accelerate for manufacturers as economies at home and abroad open-up. However, the supply chain issues and a rapidly-escalating increase in shipping costs are threatening to put blocks on the road to faster growth – despite the current optimism.”

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