Manufacturing in the region is set for an upturn in 2010, according to an employers' organisation.

EEF’s head of economic policy Lee Hopley told the Manufacturing Your Future event in London that there were signs that the recession was bottoming out. She expected trading conditions to improve in the first half of next year.

But she pointed out that access to credit remained difficult, with price volatility in materials and regulation adding to business costs.

"Manufacturing has suffered declines in output, orders, investment and cashflow and all sectors have been impacted, particularly metal and automotive industries," she said. "In addition, the downturn means that the pace of jobs cuts is accelerating, yet at the same time more companies are seeking alternatives to redundancies, such as short-time working, to try to retain the skills they know they will need to capitalise on the upturn when it comes."

Firms were told that to become more competitive, they should focus on innovation, quality and customer service, as well as cutting costs and waste through advanced lean manufacturing techniques.

David Seall, EEF South East region director, said: "Manufacturers are facing significant challenges at the moment, but there is expert hands-on support available from organisations such as EEF and the Manufacturing Advisory Service, as well as public funding for skills development and research programmes.

"I would urge manufacturers in the south and east to make the most of what is on offer in order that they are in the best possible shape for the recovery when it eventually arrives."