According to the Regional Manufacturing Outlook survey for 2019 Q4 — published by Make UK (the manufacturers’s organisation) (www.makeuk.org) and business advisory firm BDO — industry in London and the South East is booming, with growth indicators far outstripping any other UK region in five out of six survey indicators.

The average balance for total orders across the UK was +6%, whereas in London and the South East it was +21%.

The difference was even more stark for domestic orders (+30% compared to a national average of -5%) and export orders (+39% compared to +10%).

This divergence was also reflected in employment prospects, with intentions to recruit by London and South East manufacturers at a balance of +26% compared to a national average of +6%.

London and the South East is already the second largest manufacturing region in the UK (just behind the North West), employing over 400,000 people and worth £28.1 billion annually.

It is benefitting from the global growth in investment in new technologies linked to the fourth industrial revolution (such as robotics and artificial intelligence), a pattern that is expected to increase.

By contrast, the survey shows that the West Midlands in particular is suffering acutely from the problems in the automotive sector, with all six of the survey indicators in negative territory.

In addition, the balances for investment intentions were negative in the North East, North West East Midlands and West Midlands, which has important implications for the long-term performance of industry in those regions.

The only positive picture for investment intentions in the northern half of the country was in Yorkshire and the Humber.

Tom Lawton, head of manufacturing at BDO (www.bdo.co.uk), said: “The old north-south divide is unfortunately still very much in play, when it comes to industrial performance.

"Industry will be keen to see the new Government promote investment, skills and employment across the whole of the UK to re-balance growth.

"Currently, some sectors such as automotive are also facing a potent combination of structural factors that are posing great challenges for the companies and supply chains that depend on them.

"As part of efforts to spread growth more evenly, it is essential that policies are put in place to safeguard the regions where these key sectors are so important to their prosperity.”