MANUFACTURING in the region has enjoyed a strong start to the year, new figures show.

The total number of orders has almost doubled compared to the final quarter of last year, with Yorkshire and the Humber outperforming other regions of the UK.

And growth of three per cent is forecast for this year.

But there is a warning that soaring costs will put increasing pressures on companies.

The data is contained in the latest quarterly manufacturing outlook survey from Make UK and business advisory firm BDO.

It says figures were buoyed by "very strong" domestic orders, but that overseas orders also remained strong as world markets "rebounded" during the past 12 months.

"The region has benefitted in the last year from a recovery in the food and drink sector as hospitality has fully reopened – whilst demand for steel has remained high on the back of significant investment in infrastructure projects in the UK and abroad," said a spokesperson.

"This performance is reflected in the jobs outlook across the region, with the second-highest level of recruitment intentions in the UK as companies hire to meet demand. Investment intentions are also above the national average.

"The big challenge for companies – in addition to attracting and retaining talent – remains the escalating inflationary pressures which are forcing them to raise prices to record levels for the fifth successive quarter."

In response to the escalating costs, Make UK has issued a plea to the Chancellor ahead of his spring statement – which is being delivered in the Commons next Wednesday (March 23) – to take "whatever measures are necessary" to support companies.

Dawn Huntrod, regional director for Make UK in the north, said: "Manufacturers in Yorkshire and the Humber have seen a very strong start to the year as the economy has fully reopened.

"However, companies are now facing eye-watering increases in costs which are threatening to stop the economy in its tracks.

"As a result, the most immediate priority for the Chancellor in the short term must be to do whatever it takes to support companies through this difficult period."

Steve Talbot, head of manufacturing at BDO in Yorkshire, said: "Whilst order books for our region's manufacturers are stronger than in any other part of the UK, we are seeing creeping concerns across manufacturing and a worrying widening of the gap between supply and demand. Costs are rising, combined with supply chain disruptions."