Stability can be catalyst for North West manufacturers, says expert

Greater certainty over political and economic policy could be the catalyst for sustainable long-term growth in the region’s manufacturing sector, according to a leading industry adviser.

Ginni Cooper, Partner at accountancy and advisory firm MHA, the UK member of Baker Tilly International, was reflecting on the past quarter’s monthly PMI S&P Global UK Manufacturing PMI (Purchasing Managers’ Index) results, following the release of the data for June 2026.

The PMI survey is watched closely by businesses and economists – and a reading above 50.0 indicates manufacturing activity is growing. The last three months’ results of 53.7 in April, 53.9 in May and 52.2 in June indicate the industry is growing despite ongoing global macroeconomic factors.

The MHA Manufacturing Report 2026 was also released earlier this month, with respondents in the North West the most optimistic of all UK regions. 90 per cent expect growth above three per cent in the next 12 months, up from 76 per cent in 2025 and compared with 81 per cent of manufacturers across the UK and Ireland.

Ginni said despite increasing costs over recent months, particularly for transport and employment, manufacturers remained resilient, and recent announcements could provide further good news for the sector.

She said: “The prime minister’s commitment of an extra £15bn spending for the defence sector yesterday will be good news for those who supply into defence, although it often takes time for increases in government spending to make their way through the supply chain.

“However, the difficulty for the sector at the moment is it isn’t effectively able to plan forward.”

Ginni said greater clarity on taxation, skills and industrial policy would help manufacturers plan and invest with greater confidence, particularly given the optimism evident among North West firms in MHA’s Manufacturing Report 2026.

“It’s likely we will also have another new prime minister in the coming weeks, which could lead to further policy changes. The risk is that the uncertainty causes businesses to pause investment decisions while they wait for the next budget or further policy announcements,” she said.

“It’s better for the industry to know what changes are likely to happen, even if these are not positive for manufacturers – as this allows them to prepare.”

Ginni also discussed new Makerfield MP Andy Burnham, who is expected to become the Labour party’s next leader this month, and announced earlier this week intentions to accelerate the UK’s devolution journey and increase local decision making.

“There could be real positives for manufacturers in increased devolution, especially if it allows areas of the North West to shape skills provision around local industrial strengths. We have already seen benefits from devolution in areas such as Greater Manchester.

“However, we need to understand what any further changes mean in practice, so local decision-makers and industry leaders can plan and invest with confidence.”