Small to medium sized (SME) manufacturers in the South West may not be realising their growth potential, according to the latest Barometer from the Manufacturing Advisory Service (MAS).
Nearly two thirds (63 per cent) of the 130 respondents said they could have increased their turnover by up to 20 per cent in the last year if they had been able to accept or progress more of the order enquiries and opportunities they received.
In response to this most recent barometer’s special focus, more than half of companies (52 per cent) identified potentially poor profit margins as the main barrier to accepting or progressing orders. Other significant challenges highlighted by respondents included an inability to meet lead times (29 per cent) and equipment capability (21 per cent).
Simon Howes, MAS Area Director for South England, said: “While the general results of our survey were encouraging, the special focus responses suggest some significant growth opportunities may be being missed.
“Our team of expert advisors support those SME manufacturers looking to reduce production costs and lead times in order to grow their operations by both maximising yield from existing resources and by clarifying the case for further investment.
“This can enable them to increase their productivity and profitability, thereby giving them the potential to overcome poor profit margins, lead times and some of the other hurdles identified in the barometer. It can also provide vital confidence to invest in future growth.”
It appears that some South West manufacturers may have already decided to address the issue of equipment capability, with exactly half of respondents stating that they expect to increase their investment in new machinery and technology in the next six months. This is a three per cent rise from the previous quarter.
Simon Howes added: “Responses to the barometer are vital because they give us the knowledge to ensure the MAS service continues to adapt to address the challenges faced by the region’s manufacturers.”
