HALF of Midlands manufacturing and engineering firms expect to take on extra staff this year, despite the effects of Brexit, increased employment costs and a continuing skills shortage.

These are the findings revealed in the 2017 manufacturing salary survey by Stourport-based engineering recruitment specialist, Consilium Recruit.

Surveying a cross-section of manufacturing and engineering employers across the industrial heartland of the Midlands, the survey found that 42 per cent expected their headcount numbers to rise this year.

In the automotive sector this grew to 46 per cent. Most of the remainder expected their headcount to remain the same or decrease slightly.

The numbers indicate slightly more pessimism in the manufacturing sector than the same time last year, while automotive, aerospace and FMCG companies in particular are expecting to recruit this year - especially in product and process engineering, design and quality functions.

Respondents to the survey warn that sluggish international demand for UK manufactured goods and the additional cost burdens of the Apprentice Levy and National Living Wage, could reverse manufacturing growth.

The impact of Brexit on an already serious skills shortage is adding another layer of uncertainty, it has been warned, while manufacturers are also calling for more clarity on UK visa policy post-Brexit.

Consilium Recruit business development manager Paul Gunnell said: "The main concern that continues to preoccupy industry is the shortage of engineering talent.

"With severe skills shortages across manufacturing and engineering at an all-time high the government needs to clarify visa policy so that growing firms can not only attract much-needed global talent to the UK workplace, but also assure those already domiciled here that they are welcome to stay."