SME manufacturers answer call for greater productivity

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

Exactly half 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 60% of companies report that they have already raised their productivity within the last six months, with over a quarter (78%) admitting further efficiency gains are necessary in order to remain competitive.

Cautious optimism remains the other overarching sentiment among the 108 respondents.

For the third successive quarterly report, more than half of manufacturers (57%) recorded an increase in sales, with 62% expecting to grow between now and the end of March 2015.

Furthermore, 92% of firms are planning to either maintain or increase their workforce, highlighting the determination to retain skills and build capacity across the supply chain.

Business minister Matthew Hancock said: “Britain’s small manufacturers are driving our economic recovery, boosting our national productivity and helping create a record number of jobs. This is part of our long term economic plan to build a better Britain.”

David Caddle, area director of MAS, added: “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.”

The MAS Barometer is the largest survey of its kind, sharing the views of 108 small and medium manufacturers across Yorkshire and Humber, employing over 3,100 people.