Bloomer Heaven manufacturing survey reveals growth is on the cards

BIRMINGHAM-based accountancy firm Bloomer Heaven has revealed that confidence among Midlands manufacturing is high according to a new survey it has co-produced.
 
The annual Manufacturing Survey, conducted in association with MHA, asks a range of locally-based manufacturers with turnovers ranging from between £1m and £41m for their views on their growth potential during the next year. The survey also probes into their strategy towards investment in product ranges and research and development and on staffing levels.
 
This year’s survey reveals that more than 90% of businesses who responded are planning for growth in 2014 with an expectation to expand and develop their product ranges. They predict that a main driver for success will come from international trade.
 
Some 58% of businesses, according to the survey results, are currently exporting abroad with Europe and North America being two of the most active destinations.
 
In the Midlands, 83% of those surveyed are planning to invest in research and development in 2014 which is just below the national average. Many of the businesses who have invested in R&D had taken advantage of the tax breaks currently being offered by the Treasury.
 
The survey contained good news for employment in the region with 68% of companies confirming they are planning to increase their staffing levels with no companies surveyed predicting any job cuts. Some 66% of those surveyed were also committed to taking on apprentices and trainees as part of their growth strategy.
 
The survey also included sobering news for the banking sector with 41% of respondents believing that they still did not receive enough support from their bank.

In overall costs to run a business, 83% of businesses were anticipating their costs would rise in 2014 particularly in energy costs and materials. Some 58% of businesses said that this would not be possible to pass on to customers so therefore margins will be challenged and cost saving in other areas of the business will need to be identified.
 
Bloomer Heaven managing director Chris Barlow said: “The work we do at Bloomer Heaven every day with a wide range of manufacturing businesses has confirmed that confidence among the Midlands manufacturing sector is growing significantly.

“I believe the findings of this survey shows that the recovery is well underway and the prospects for further growth which importantly also means more jobs at all levels is something to celebrate.

“Clearly there are challenges for businesses, not least in managing the increase in costs, but with prudent business planning, control of finances and utilisation of tax breaks such as those around research and development – the future is looking very positive for Midlands manufacturing.”