Northern Ireland is predicted to experience the fastest manufacturing growth in the UK largely on the back of a pick-up in exports to the Republic, the North’s main export market.

A report commissioned by lobby group Manufacturing NI says the sector accounts for the largest source of export revenue in the North, with sales reaching £6 billion in 2014.

The study, which was conducted by Oxford Economics, highlights several challenges facing the sector, but it is unequivocal that if facilitated by government, the sector has the opportunity to benefit from global growth.

It predicts the sector will benefit strongly from the recent upsurge in economic growth in the Republic, which has been the fastest-growing euro zone economy for the past two years, and from growth in the US and Asia.

The report noted, however, that while manufacturing contributed to 14 per cent of gross domestic product in the North in the Republic it contributes some 23 per cent.

Manufacturing NI's chief executive Stephen Kelly said that setting out a clear ambition to arrest the differential between GDP contributions north and south of the border is essential in the next programme for government.

“”Historically we in Northern Ireland have seen ourselves as having an industrial heritage which can hold its head high on a global stage. However, there are lessons to be learnt on how why there is such a differential in GDP contribution north and south,” he said.

The report suggests the North’s manufacturing sector support 214,000 jobs directly and indirectly, contributing about £9.9 billion to the economy.

Productivity at £55,700 is 38 per cent higher than Northern Ireland average with advanced manufacturing contribution 27 per cent more.