Record number of West Midlands manufacturing SMEs plan to create new jobs
SMALL manufacturers in the West Midlands are looking to take on staff in record numbers as recruitment confidence hits a three-year high.
Nearly two thirds of companies (65%) questioned by the Manufacturing Advisory Service’s Barometer are looking to increase the size of their workforce, marking a 17% increase on the same period last year.
This is the highest level of confidence in staff recruitment seen in the history of the report.
Firms are looking to take advantage of new opportunities, including expansion and the re-shoring of supply chains in sectors such as automotive, aerospace, and nuclear.
These encouraging figures are reinforced by growth in sales – 62% reported an increase in the previous six months and more than three quarters (76%) expect to win more work between now and October – an 11% and 3% rise respectively from March 2013.
Responses also reveal an appetite for investment in new plant and machinery (71%) and in developing new technologies (64%).
Business minister Michael Fallon said: “Britain’s manufacturers are helping drive the UK economic recovery. Through our industrial strategy and economic plan, the Government will continue to work closely with this vital sector to ensure that confidence stays high, creating more highly-skilled jobs and a stronger economy for everyone.”
Lorraine Holmes, area director of MAS in the north and west, said: “We have seen consistent signs during the last 12 months that firms are ramping up capacity in order to meet increasing orders and take advantage of work coming back to the UK.
“This is the clearest signal yet that our manufacturers believe the upturn is sustainable. Two record figures for recruitment and investment in technology suggest many small manufacturers in our region are planning for the long-term and, encouragingly, they are taking action now to manage future expansion.
“Our Barometer report highlights that small and medium-sized manufacturers are contributing strongly to jobs growth and expect to continue to recruit. They may find it harder to follow this trend, especially in advanced manufacturing sectors, unless they invest in training and retention.”
The research also found that managing energy costs is a major concern for West Midlands manufacturers.
