SME manufacturers sceptical on Industrial Strategy
SME manufacturers across the East and West Midlands have remained resilient in the face of ‘Brexit’ uncertainty, with 60% of firms recording an increase in sales during the last six months.
The latest Manufacturing Barometer, conducted by SWMAS Group in partnership with Economic Growth Solutions (EGS), also found strong optimism for growth, with 69% of firms expecting sales to grow again during the first half of 2017.
Senior decision makers from 56 companies across the region provided an insight into life on the shopfloor as part of the latest report. Nearly half (47%) of those questioned revealed they plan to invest in new capital equipment and premises going forward, while 48% plan to increase their workforce to cope with demand.
Almost a third (30%) of firms said they remained to be convinced that the government’s Industrial Strategy would deliver their business needs – with some claiming the strategy failed to undertsand the true needs of the SME manufacturing sector.
Nationally, firms shared many of the same concerns as their counterparts in the Midlands.
The National Barometer revealed the majority of SME manufacturers were not convinced by the government’s plans.
Just a quarter of Midlands respondents agreed that the direction of the industrial strategy would work, claiming better engagement was needed between Westminster and SMEs.
Simon Howes, managing director of SWMAS Group, said: “There has been a lot of talk about uncertainty around the impact of Brexit and the possible impact it could have on manufacturing, which makes the positive results from the latest Barometer very welcome.
“There has been a surge in the number of Midlands SMEs reporting an increase in sales showing that orders are still being placed and, anecdotally, there is evidence of a spike in exports due to the fall in Sterling. This is something we plan to look at in more depth in future reports.
“Encouragingly, there appears to still be a strong appetite to invest in technology and people to drive growth and productivity and that is something that could prove crucial if our SMEs are going to fulfil their aspirations.”
When asked what should be the main focus for the Industrial Strategy, R&D and Productivity were high on the priority list, closely followed by access to growth opportunities within the UK, export and operational skills.
Lorraine Holmes, CEO of Economic Growth Solutions and the recently launched Manufacturing Growth Programme, added her support.
She said: “Our SMEs are giving a strong message to Government. They need to feel that the new strategy reflects their aspirations and will support them in making the most of new opportunities and overcoming some of the challenges they are and will continue to face.
“We’d urge government to listen to SMEs as we move forward.”
The Manufacturing Barometer is the largest survey conducted of SME manufacturers in the UK and asks senior decision makers for their views on business performance, future trends and Government policy.
