THE region's manufacturers have enjoyed an upturn in fortunes in recent months but remain cautious about their future prospects.

This view emerges from the latest quarterly South West Manufacturing Barometer, which found firms reporting increased turnover and a stabilisation of their workforces.

The survey, from the Manufacturing Advisory Service in the South West (MAS-SW), revealed that 75 per cent of firms polled experienced either an increase or a constant level of turnover in the past six months, while 58 per cent said order books had grown since the last quarter, suggesting that buying confidence is also increasing.

But there was a drop in expectation for sales turnover and staff numbers during the next six months as firms are taking a cautious view of future trading conditions.

On a brighter note, 36 per cent of companies are looking to increase spending on technology.

One firm continuing to invest is Goodridge, the Exeter-based specialists in automotive fluid transfer systems. Six months ago it opened a new manufacturing facility at Sowton, with £500,000 of new equipment.

Its headquarters near Exeter Airport are being re-organised as a product assembly hub, with another £100,000 being spent on an automated order picking and dispatch facility, and it continues to win new business, notably with Triumph Motorcycles in the UK and Cummins Diesel Engines in the US.

Jon Hanna, director of corporate development, said: "Our traditional motorsport and retail markets are holding up very well, but our major growth driver is the relationships we have with original equipment manufacturers.

"We are taking on new contracts all the time and are constantly asked to quote for more sophisticated business than we have in the past."

Mr Hanna said all manufacturers in the UK had benefited from the weaker pound.

"We are fairly strong because we export a lot, but we are totally dependent on the end users — the manufacturers," he said. "We are confident we are going to grow with the growth of our customers."

Some 57 per cent of firms surveyed expect staff levels to stabilise over the next six months – up from 50 per cent in the previous Barometer poll.

Export markets are presenting more opportunities for manufacturers in the South West, but many remain cautious when faced with the VAT rise in January 2011, a lack of skilled workers and rising fuel prices.