Make UK, the country’s leading manufacturing trade body and formerly called the EEF, has upped its forecast for 2023, but still expects production to drop year-on-year.
Factory output was predicted to drop by 3.3% annually at the start of the year but now a fall of 0.3% is more likely.
Forecasts remain unchanged at a rise of 0.8%.
A recovering travel industry has helped lift orders in the aerospace industry and labour shortages have resulted in a rise in the production of electrical goods.
However, supply chain issues are still plaguing the industry, argued Richard Austin, head of manufacturing at accountancy firm BDO.
“They [manufacturers] are facing continued disruption and increased costs at home and abroad, with many choosing to onshore operations but facing major barriers in doing so,” Austin said.
Last week, manufacturers Rolls-Royce said it will be expanding a submarine factory in Derby, adding thousands of jobs to the area.
BAE Systems is also expecting growth in 2023, largely buoyed by the Ukraine war.
Battery makers and other industry manufacturers have had a tougher experience post-Covid.
Last week, AMTE Power revealed that it had four weeks to secure funding or risk collapse, with the group eyeing the hefty subsidies the US offer renewable energy firms.
A the start of 2023, Britishvolt, another UK-based battery maker was forced to enter administration, leading to an Australian firm acquiring the company.