The outlook for small to medium sized (SME) manufacturers in the South West is encouragingly positive with nearly two thirds (64 per cent) of the 160 respondents to the latest Barometer from the Manufacturing Advisory Service (MAS) expecting to increase turnover over the next six months. This is a significant rise of 23 per cent from the same quarter last year.
Manufacturers’ confidence is further reflected by their investment intentions, with nearly half of respondents (47 per cent) expecting to increase investment in machinery over the next half year, a six per cent increase on last quarter.
The forecasts for the months ahead are further bolstered by sales results with over half (52 per cent) reporting an increase in turnover within the last six months, another rise from the previous quarter. This is higher than the sales figure of 43 per cent reported by the national MAS Barometer. Nearly half (48 per cent) of manufacturers went onto report an increase in order books, 42 per cent also reporting higher enquiry levels.
Commenting on the findings, Simon Howes, MAS Area Director for South England, said: “It is reassuring to see so many of our manufacturers forecasting an increase in turnover given both the UK overall economic contraction in the final quarter of 2012 as revealed by the ONS and the ongoing concerns surrounding recovery in the eurozone. This demonstrates the resolve of manufacturers in the region as well as illustrating that many are still finding opportunities to grow.”
Business Secretary Vince Cable said: “Manufacturing is a key driver in our economy, which is why it takes centre stage in the Industrial Strategy for growth. It is vital that Government and industry continue to work together to address growth priority issues like access to finance and attracting young people into the sector.”
One contributing company that has worked with MAS is LittlePod, a manufacturer of high-quality vanilla and chocolate ingredients.
LittlePod has experienced recent growth in turnover, order books and enquiry levels and is forecasting to increase turnover, staff numbers and investment in both machinery and new technology in the next six months.
Janet Sawyer BEM, Managing Director, said: “Our growth has been possible because with MAS support we developed a clear understanding of our systems and processes before going to market. This has enabled us to future-proof our business and anticipate what might happen as we grow. We trade across much of Europe and Asia and have recently won a contract to supply our whole product range across 17 stores in Japan. We hope to expand further still and are confident knowing MAS are on hand to offer us more support if needed.”
Another contributing South West manufacturer that has worked with MAS, Advetec Holdings Ltd, has also increased its turnover and is forecasting to do so again over the next half year.
Craig Shaw, Group CEO, said: “We have been able to change our whole business model in just one year by expanding our sales globally. We now export all over the world and have seen a substantial rise in turnover. Tendering for significant UK contracts continues and we have been approved to supply a leading defence organisation as well as getting onto the official provider list for a major nuclear power station. We have signed up to do future projects with MAS as we look to develop other technologies. Their support is invaluable.”
