Sales increasing say smaller manufacturers
THE region’s small and medium sized manufacturers are upbeat with nearly 70% expecting sales to grow in the next quarter.
Research for the Manufacturing Advisory Service’s Manufacturing Barometer survey of 55 SME manufacturers jointly employing 2,750 people, shows that 56% of respondents saw turnover increase in the previous six months and 69% expecting further increases over the next four months.
Nearly half of firms (47%) are still looking to recruit and 51% said they were planning to increase investment in new technology.
The respondees were asked about the barriers to growth they face, with the most popular responses being the burden of regulation and finding new recruits.
Lorraine Holmes, area director of the Manufacturing Advisory Service, which is part of the government’s Business Growth Service said: “There have been concerns that manufacturing is slowing down, and GDP figures from the Office for National Statistics did indeed reveal a slight decline.
“I’m pleased to say that SME manufacturers are feeling more optimistic. Turnover for the last period has bounced back and the outlook for future sales appears very positive, with automotive and construction strong and new opportunities in offshore wind and nuclear opening up previously untapped markets.
“Investment plans in technology should be welcomed. This shows companies are recognising that they need to spend in order to compete globally, offering unique processes and technologies that establish themselves on the added value chain.”
Firms’ biggest fears were: market competition (42%), followed by the burden of regulation (36%) and the availability of appropriate finance and investment (34%).
