Manufacturing firms in Sussex are feeling the effects of the worldwide economic slowdown.

Recruitment is slowing down with many firms saying they are freezing vacancies, not introducing new products and reducing investment.

A number of major employers have announced redundancies, including BOC, Hosiden Besson, Bowthorpe and GlaxoSmithKline.

Other industries, especially those associated with travel, have laid off staff as a direct result of the United States terrorist attacks.

But Sussex Enterprise, which has more than 5,000 local firms as members, warned cutting back too much could mean businesses get left behind when the recovery comes.

Head of business development David Ripley said: "Although manufacturing industry has seen a downturn in output, this doesn't necessarily mean there is a long-term problem.

"Many companies have experienced a 30 per cent reduction in output but this is as a result of changes within the industry rather than a long-term recession.

"Companies should be preparing for these changes by looking at new markets, improving the control of their cash and resources and managing their employees effectively. They need to re-focus and tighten the control of their business during this time of uncertainty."

To help firms through the lean time, Sussex Enterprise has introduced a series of seminars devised as a reaction to the decline in manufacturing over the past 12 months.

Mr Ripley said: "We have devised a series of half-day workshops covering the key tasks which will help companies get through tough times.

"These will be followed by half-day visits from a business adviser who will advise on how the lessons learnt at the workshops can be implemented in the day-to-day running of the business.

"We have a large proportion of high technology and communication-related industries that are affected by this period of uncertainty. We intend to help companies weather the storm and take advantage of any opportunities."

Economic growth figures for Sussex have been revised downwards from 2.5 per cent to two per cent, although the full effect of the terrorist attacks and the war had not been completely taken into account.