MANUFACTURING in the North-East is well-prepared to cope with the double-dip recession, a business advisory firm has said.

Action taken by the region's manufactuing firms since the first recession has made them better equipped to cope with future shocks, said consultancy firm Deloitte.

The lastest figures show about 20 per cent fewer manufacturing firms entered administration in the first quarter of this year, compared to the same time last year.

The improvement in the administration figures comes despite the latest Government statistics showing manufacturing output fell by 0.9 per cent nationally in March 2012, compared with the year before.

Before the economy returned to negative growth, manufacturers across the North East had been taking steps to preserve cash, manage commodity and staff costs and streamline their businesses.

The defensive steps have been caused by ongoing uncertainty in the Eurozone which accounts for over £5bn of exports from the region, combined with weak demand at home, and a rise in energy and raw material costs.

Firms have, in some cases, radically restructured their businesses, ending production of less profitable or loss making lines in order to focus on higher margin products in order to survive.

Simon Manning, North-East manufacturing partner at Deloitte, said: "The latest manufacturing administration figures show the steps taken by sector have made it better placed to survive a downturn in the economy and although conditions are unlikely to improve in the near future these streamlined firms will be well placed to take advantage of the upturn when demand returns."