Member Article

UK Manufacturers report positive outlook

English manufacturing SMEs are optimistic for growth in 2013, according to the latest Manufacturing Advisory Service (MAS).

43% of companies questioned have seen an increase in their order books over the past six months, and 62% expect sales turnover to grow between now and June 2013.

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.

“As clearly demonstrated in the latest MAS Barometer findings, skills provision remains a concern for many manufacturing SMEs. It’s vital, therefore, that Government and industry continue to work together to address it, and other growth priority issues like access to finance and attracting young people into manufacturing.

“I look forward to discussing these issues and more with businesses later this week at my department’s Manufacturing Summit in Warwickshire.”

Firms also showed their intentions to hire, as 39% said they expected to take on new staff. However, 45% cited availability of specific skills as a barrier to growth.

Production operatives, CAD designers and CNC programmers are most in demand by SME manufacturers.

Lorraine Holmes, Area Director for MAS in the North and West, explained: “The overwhelming feeling is one of positivity, with order books, sales expectations, future investment in premises/machinery and the desire to create employment all up on the previous report.

“Our companies are sending out a powerful message and highlighting their determination to explore new opportunities in 2013 following a year of global consolidation in 2012.

“SEMTA has done a fantastic job of helping companies develop the future pipeline of talent, with a recent report highlighting a 142% increase in the number of apprentice starts since 2009-10.

“What our findings show is that there is still work to do and we need to ensure that the recent progress is just the start and we continue to develop apprentices and graduates that have the right level and types of skills required by manufacturers.

“In terms of where the remaining 61% will come from? Well we’ve had a lot of anecdotal information to say companies are turning to older and, in some cases, retired workers as an immediate solution to their skills shortages.”

Nigel Jump, Chief Economist at Strategic Economics, added his view: “Many manufacturers expressed a desire to invest and hire, but deferred
expansion in the face of low productivity and uncertain markets in 2012.

“In testing macro conditions, managing cash flow, seeking orders, matching competitors and handling disproportionate regulation are all cited as constraints.

“But, the Barometer also indicates a potential for recovery. SME manufacturers are hoping to increase turnover, staff numbers and investment in the first half of 2013 and hope these aims will be supported by the banks, the government and other agencies.”

This was posted in Bdaily's Members' News section by Tom Keighley .