NEW figures estimate Island manufacturing businesses could grow by three per cent by 2012.
According to the South East England Development Agency (SEEDA), 41 per cent of manufacturing firms in the South East expected to see a rise in orders in the next three months.
It is estimated that on the Island, manufacturing will grow by 0.7 per cent this year and a further 2.3 per cent next year, according to Cambridge Econometrics, which provided the forecasts for SEEDA.
Paul Lovejoy, executive director for strategy at SEEDA, said: "The report shows that growth is slow but steady.
"Continued increases in business costs could slow the revival for manufacturing companies, however, the forecasts look positive.
"What is encouraging is that the South East is home to cutting-edge industries, which are central to economic growth and future success."
Among the Island companies to see a rise in orders was Flo-Control, which produces a unique push-button fuel can.
Dawn Bone, operations director of the Cowes-based firm, said: "Originally we were having them made in Poland but we had a few issues about quality and we shifted production back to the south coast.
"They are being made in Waterlooville, which has helped us manage the manufacturing much better."
The company has also enjoyed a large number of enquiries from abroad.
"We have got someone dealing with the interest we have had in Australia and we have also had a lot of interest in the United States as well.
"If the enquiries we have had turn into orders, then 2011 is going to be a very good year for Flo-Control," she said.
Reporter: ross.findon@iwcp.co.uk