A manufacturing business is spending £750,000 on three hi-tech machines as it prepares for an upsurge in orders.

Carlton Laser Services, of Hamilton, Leicester, is confident of winning a flurry of contracts over the next few months as the economic recovery gathers pace.

It follows upbeat reports on the state of the industry in the county in recent weeks.

Dennis Kent, Carlton's managing director, said: "From speaking to our key customers, I am getting the message they are confident about increasing orders. It would be easy to get caught out and not be ready for when the surge comes."

Mr Kent said he was unconcerned by next week's emergency budget, saying that possible rises in VAT and capital gains tax would not have a major negative affect.

"There's nothing that's going to change our mind about this investment," he said.

Mr Kent said the new machines will boost reliability and speed up the production process. Carlton makes electronic enclosures or "cabinets" for factory machines.

"The new machines bend metal and are state-of-the-art," said Mr Kent. "It will mean we are able to work much more efficiently and get it right first time, every time."

Mr Kent, who said the machines would be delivered in August, said he was offering nine temporary workers permanent positions. The firm has 68 staff.

Earlier this month, a survey by the Engineering Employers' Federation (EEF) and business adviser BDO, reported the highest increase in East Midlands firms reporting rises in quarterly orders for at least 15 years.

Of the 400 regional companies who took part in the survey, 60 per cent had seen an increase in orders, while 62 per cent had seen an increase in output, which was also the highest since the report began in 1995.

A year ago, the figures were 17 per cent and 12 per cent respectively.

Sue Kirby, the EEF East Midlands spokeswoman, who is based in Barleythorpe, near Oakham, said: "Manufacturers in the East Midlands are now delivering on their promise that, given the right conditions, they would flourish and drive the UK out of recession."

Construction equipment firm Caterpillar, of Desford, announced last month it was creating 300 jobs after seeing orders double in the past year.