MANUFACTURING remains healthy in Yorkshire with the number of firms and jobs expanding ahead of the national average , a new report shows today.

The latest annual findings by manufacturers’ body EEF and accountants BDO, says the industry has made strong strides over the past year with the number of firms growing and total orders remaining above the UK average.

It shows that Yorkshire now boasts more than 11,900 manufacturing firms, four per cent higher than a year ago which account for 16 per cent of the region’s total output.

It lists food and drink, metals and rubber and plastics as key sectors.

Regional manufacturing employment grew by 9.6 per cent between 2010 and 2016 – more than double the UK’s average growth rate - with 285,000 people now employed, accounting for 10.5 per cent of the region’s total workforce.

Manufacturing exports by Yorkshire firms remain strong, accounting for 5.7 per cent of the UK’s manufactured exports, with 47 per cent destined for the EU, slightly below the national average.

But the latest Regional Manufacturing Outlook survey reveals post-Brexit jitters among firms, with confidence dropping by one per cent following the referendum vote in June, although Yorkshire remains the second most confident region.

Local manufacturers see more opportunities from Brexit than their peers in other regions with a quarter expecting increased demand and looking forward to a lower regulatory burden.

Andy Tuscher, EEF Yorkshire regional director, said: “Despite some challenging times, manufacturing in our region remains a force to be reckoned with. This last year shows firms getting back into their stride. But the referendum outcome provided a jolt and it’s clear that we’re now on a new path with fresh challenges ahead.

“Exchange rate volatility, political uncertainty and the danger of increased costs are already causing concern in the region and business confidence is in short supply. But our sector is nothing if not dynamic, determined and resilient.

“With a solid business environment, supportive policies and the right outcome from Brexit negotiations, manufacturers in this region should be able to overcome the risks, reap future growth rewards and get their business confidence back on track.”

Jason Whitworth, BDO corporate finance partner and head of manufacturing in Yorkshire, added: “We would like to see the Government match manufacturers’ long-term outlook by developing a 15-20 year industrial policy that avoids the disruptions of the political cycle.”