EAST Yorkshire's caravan industry is showing signs of recovery.

Having shed about 1,500 jobs over the past 12 months, local manufacturers are now reporting an upturn in business.

Ironically, the recession has played a part in the boost, as more people opt for cheap caravan holidays in Britain.

Earlier this year, the Caravan Club announced a 40 per cent rise in bookings on its holiday sites.

When combined with the recent heatwave, sales of static and touring caravans are once again on the rise.

According to Paul Bell, head of economic development at East Riding Council, 250 jobs have been created over the past three months in the region.

He said: "There is evidence that some companies have gone from operating on a three-day-week basis to full-time again.

"In some cases, production is six or even seven days a week, which is very positive news."

However, Mr Bell acknowledged the industry was still vulnerable though because of its seasonal nature.

Coachman Caravans, which makes touring caravans in Hull, has seen a 20 per cent rise in orders in the past three months compared with the previous year.

Jim Hibbs, managing director of the firm, which is the Mail's Business of the Year 2008, said: "The sales of used caravans in dealerships has been manic since Christmas, because of the shift to British holidays.

"This has left some dealerships very short, and so more people are also buying new caravans.

"We are now looking forward to 2010 with much more confidence."

The Mail has been championing local businesses fighting back from the recession.

Through our Bounce Back campaign, we are working with several of the area's best-known companies and organisations to offer advice and support during the economic downturn.

Swift Caravans, in Cottingham, which lost more than 300 jobs last year, is among those firms to rehire.

The company, which makes touring, motorised and static caravans, will take on 30 staff between now and September.

Richard White, group marketing director, said: "It is fair to say that demand for both touring caravans and holiday homes are currently running at higher levels than last year."