Small to medium sized (SME) manufacturers in the South West have reported steady signs of growth over the last six months, according to the latest Barometer from the Manufacturing Advisory Service (MAS).
More than a third (35 per cent) of respondents reported that their sales, order books and enquiry levels had all increased over the last half year. Of these, the most significant growth has been in sales, with over half (57 per cent) of companies reporting an increase. This is a rise of four per cent from the last quarter.
Simon Howes, MAS Area Director for South West England, said: “Our latest Barometer results highlight the flexibility, adaptability and resilience of South West manufacturers, many of which continue to thrive despite the difficult trading conditions in recent years. The findings also mirror the encouraging figures recently reported by the Office for National Statistics, which revealed an increase in manufacturing output between July and September.
“However, our survey also provides some evidence that expectations of sales growth are somewhat cautious, with companies slightly lowering their sales forecasts for the coming six months compared to the previous quarter. This is a time for manufacturers to review their business and product strategies, generate new product ideas and identify market opportunities to ensure that they can fully grasp the opportunities presented by the improved economic outlook.”
Business Minister Michael Fallon said: “These findings are another sign that the economy is heading in the right direction and confidence is returning as we move from rescue to recovery. The Government is committed to helping SMEs grow which is why we are saving companies around £1bn through removing unnecessary red tape, cutting corporation tax and establishing a business bank to diversify the choice of lending available to SMEs.”
The Barometer also reveals that forecasts for investment in new technology have continued the pattern of steady growth shown since January, with 42 per cent of businesses indicating that they plan to increase their spend in the next six months. There has also been a slight rise in the number of companies looking to take on staff, which now stands at 40 per cent.
Simon Howes added: “Although plans to recruit have increased slightly since the last quarter, these numbers could still be a concern if manufacturers are to achieve their growth forecasts. It is vital that businesses frequently review their recruitment plans to ensure they have enough skilled workers. A lack of available skills could directly hinder growth as the economic recovery starts to take full effect.”
