A lack of market knowledge is one of the principal barriers to growth for South West manufacturers, according to the latest Barometer from the Manufacturing Advisory Service (MAS).
When asked, close to half (44 per cent) of respondents identified market knowledge as the main inhibiting factor to realising future sales growth to 2016 in a number of different sectors. Although this is significantly lower than the national figure of 79 per cent highlighted in the third barometer from MAS to be rolled out across England.
This difference could be attributed to the fact that the South West is home to many high quality SME manufacturing businesses that are low volume, niche and frequently family owned. These businesses have had to be agile and innovative in good times and during tough trading conditions. They are often looking for new markets or opportunities.
Commenting on the findings, Simon Howes, MAS Area Director for South England, said: “We are not surprised that market knowledge was identified as one of the biggest barriers to growth as this can be difficult information to obtain and analyse. However, it is something that is vitally important for businesses to gain an understanding of because it is key to underpinning a clear growth strategy.
“A good starting point is to define the business’s strengths, review its competitors and develop a structured plan to utilise its capabilities. Manufacturers should also closely review pressures being applied by suppliers and customers and even consider alternative offerings and opportunities for diversifying. This is something that MAS can help with through our network of experienced advisors.”
One contributing manufacturer that has worked with MAS is Dorset-based Climateq Ltd, which manufacturers a range of energy saving air conditioning control products. The company has reported increases in sales, order books and enquiry levels within the past six months, and has a range of new products in the pipeline. A strategic marketing approach has played an important part in this success.
Samantha Flavell, Sales Director at Climateq, said: “Our rapid growth has been largely due to our unique product offering and the significant amount of time and effort we spent, and continue to spend, researching the marketplace. Rather than adopting a scattergun approach to try and reach as many different sectors as possible, we have a clearly defined marketing strategy in place. In our experience, developing a relationship with a prospective client in one sector opens doors to several other opportunities further down the line.”
The MAS Barometer provides a snapshot of trends affecting English manufacturing SMEs, as well as an overview of economic conditions and issues faced by the sector.
