THE long-term viability of manufacturing in Greater Manchester is now questionable with market conditions the bleakest for some time, according to a shock survey.

The nationwide study, commissioned by leading turnaround finance firm the MacDonald Partnership in association with asset management company Kelso Place Asset Management, indicates that the manufacturing industry is in a major slump.

Nearly two thirds of respondents (72 per cent) said market conditions are getting worse with 20 per cent saying conditions are improving.

A further 73 per cent expect trade to worsen over the next 12 months, with just 15 per cent expecting it to improve.

With lack of access to funds hampering business performance, 81 per cent agree there is a shortage of available finance and the year ahead looks a bleak one with serious job losses likely.

The strength of sterling and the high cost of structure in the UK are seen as key factors affecting the sector's viability in the UK.

More than three quarters, 81 per cent, agree that high structure costs are reducing the viability of manufacturing in the country.

Doug MacDonald, chartered accountant and director of the MacDonald Partnership said: "The year ahead looks to be a depressing one for the manufacturing industry in Greater Manchester.

"It shows that you can't manufacture in the UK and that has a huge implication for the manufacturing sector as a whole."

He highlighted a labour shortage, high rents and transport costs as some of the factors working against the sector.

Mr MacDonald went on: "I don't think anything can be done to change the fundamentals for manufacturing in the UK."