West Midlands manufacturing SMEs on a productivity drive – MAS Barometer

IMPROVING productivity is helping small and medium manufacturers in the West Midlands continue to grow and adapt to a general softening in the marketplace.

Some 60% of firms say they expect to increase investment in new technology, machinery or premises in a bid to improve their productivity according to new figures.

The latest Manufacturing Advisory Service (MAS) Barometer revealed that 56% of companies report that they have already raised their productivity within the last six months, with 83% admitting further efficiency gains are necessary in order to remain competitive.

Cautious optimism remains the other overarching sentiment among the 65 respondents.

For the sixth successive quarterly report, more than half of manufacturers (61%) recorded an increase in sales, with a similar figure (62%) expecting to grow between now and the end of March 2015.

Furthermore, 98% of West Midlands firms are planning to either maintain or increase their workforce, highlighting the determination to retain skills and build capacity across the supply chain.

Lorraine Holmes, area director of the Manufacturing Advisory Service, said: “Our Barometer shows that manufacturers are already responding to recent observations by the Bank of England (BoE) that productivity needs to be raised.

“It is also reassuring that it’s not just the large manufacturers who understand what makes them competitive. Our small and medium firms have also recognised the importance of continually improving productivity.”

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