Manufacturers are facing significant energy price rises just as some of the first signs of economic recovery are starting to shine through, according to new research.

The latest findings from BDO Stoy Hayward’s Quarterly Manufacturing Energy Tracker shows that oil prices rose by 31 per cent in the second quarter of 2009 – an average of $61.35 a barrel in compared to $46.74 in the first three months of this year.

Without taking into account demand and supply models for energy prices, manufacturers will be faced with further energy price rises of 17 per cent over the next ten years as a result of the Government’s plans to reduce Carbon Dioxide emissions.

Tom Lawton, head of manufacturing, at BDO Stoy Hayward said: “As manufacturing output has risen for four consecutive months now, the last thing manufacturers need is a rise in their energy costs. All energy price rises will do is hamper manufacturers’ chances of success in this tough environment.

“Manufacturers need to focus on how they make the best use of their energy and start looking towards more efficient/greener energy options in the future – particularly in light of the announcement over the Government’s White Paper on renewable energy.

“One small mercy is that oil prices are still some 52 per cent cheaper that this time last year when oil prices reached an all time average high of $128.19 a barrel.”

However, Mr Lawton said it is not all doom and gloom in the manufacturing sector as both electricity and gas bills fell during the three months to July. Gas prices fell by 40 per cent and electricity prices fell by 23 per cent in comparison with the first quarter.

“Given the difficulties manufacturers have faced over the last six to 12 months, any fall in the price of energy will be a welcome relief to the sector,” Mr Lawton concluded.