Following a jump in the number of vacancies in manufacturing in the official figures, companies across the country continued to recruit over the past three months. Alongside the positive investment intentions, the survey indicates a further gradual improvement in confidence.
Over the past six months, manufacturing grew by 2.3%. Since the recovery began, despite only accounting for around 13% of the economy, manufacturing has been responsible for one-third of economic growth.
EEF chief economist Lee Hopley said: "Recent data appear to indicate that manufacturing may be heading for more turbulent times. However, cutting through some of the noise from temporary factors over the past few months, our survey continues to show underlying strength in output and orders. Providing that buoyant demand from overseas markets holds firm, we should see growth maintained through the rest of the year."
The survey was notable for continued strong levels of recruitment intentions (up 24%), backing official data, which last month showed a record for manufacturing vacancies.
Commenting on the report, Chris Phillips, VP at talent management consultancy, Taleo, said: "As the jobs market begins to show signs of improvement, we are likely to see the age-old questions around skills shortages re-emerge, as the demand for new talent increases. However, instead of instantly looking outside of the organisation to bring in new talent, we would urge companies to first look inside their organisation, to ensure they are making the most of existing skill sets and employee career aspirations. While there will always be a need to recruit externally, an effective talent mobility strategy, which allows companies to mobilise people internally in response to business need, makes great business sense and can prove both cost-effective and highly motivating for internal staff. "Our recent survey of HR decision-makers supports this notion, with 71% of respondents agreeing that it is important for companies to be able to proactively and strategically move people from role to role. However, the challenge facing employers is whether they have the necessary 'talent intelligence' to enable them to accurately identify the various skill sets that exist within their organisation. This is where having the right talent management technology in place can prove key, enabling managers to identify where the opportunities and gaps within their organisation lie and matching these with existing, internal skill sets."