MANUFACTURERS in the region continue to be at the sharp end of the economic downturn.

That's the worrying conclusion following a survey of business carried out by the EEF (Engineering Employers' Federation) in the North West.

With this sector now technically in recession, EEF is calling on the Government to take a more strategic approach to the problems manufacturers face.

The survey of 134 EEF members in the region was carried out in August and the results are more negative than an earlier one undertaken in the previous quarter.

The trend of increased job losses over the first half of the year has intensified, with a third of the companies sampled indicating they had cut back on their workforce. In addition, figures for volume of output and new orders have also taken a sharp dive, down 15 per cent and 19 per cent on balance respectively.

The tough trading conditions manufacturers have experienced throughout 2001 also show no signs of easing.

Andrew Semple of the EEC North West said: "These figures back up what our members in the region are telling us daily that business is though and getting tougher.

"What they want to see is a strategic approach from the Government to tackle the problems in manufacturing."

He added: "In the short term, for example, there is a lot the Chancellor could do in his pre-Budget statement to assist moves to increase productivity.

"Targeted tax incentives on information communication technology investment and research and development would be very welcome."

Mr Semple went on: "It is now also the time to review the climate change levy, a disastrous piece of economic policy that many EEF members in the region say is now hitting them when they need it least."