South West manufacturers have seen a strong start to summer with increased orders in aerospace and defence.
This is according to a survey by Make UK and BDO, which said the sector is worth nearly £4bn to the region's economy.
The second quarter Manufacturing Outlook survey showed output in the South West at a balance of +60 per cent, with orders at +47 per cent.
This has led to positive recruitment intentions at +27 per cent and an investment increase of +13 per cent.
Despite this, the survey revealed a decline in manufacturers' view of the United States as a growth market for exports.
The US has dropped to fourth place for UK manufacturers, with Asia/Oceania and the Middle East taking precedence.
The survey also showed six in ten companies expect their US export volumes to be hit by tariffs, with 63 per cent anticipating negative business impacts.
Kerri Anne Mruk, region director for Make UK in the South West, said: "Despite the challenges and current economic uncertainty, South West manufacturers have seen an upturn in their fortunes."
However, the survey predicts a negative growth forecast for 2026 at -0.5 per cent.
Matthew Sewell, head of manufacturing at BDO in the South West, said: "Whilst the sector’s overall forecasted decline in growth is concerning, the appetite for skilled recruitment and targeted investment is strong in the region."
