Partner Article

Barometer reveals year peak in Yorkshire manufacturing confidence

Growth prospects amongst Yorkshire and Humber manufacturing SMEs is at a twelve-month high according to the latest Manufacturing Advisory Service (MAS) Barometer, which reveals nearly two thirds (63%) of companies questioned are expecting to increase sales over the next six months.

There was positive news on recent performance, with 39% of the 89 firms who responded reporting a rise in sales turnover, whilst 91% of respondents are either looking to take on staff or keep workforce levels the same.

Appetite for investment has also seen an upturn, with 41% planning to boost spending on new technologies and 46% intending to invest in new machinery and premises (up 2% on last quarter).

This overwhelming optimism is present despite ongoing barriers causing SME manufacturers to turn down new opportunities.

In response to the Barometer’s special focus, more than half of firms (54%) quoted poor profit margins as the main issue, followed by an inability to meet lead times (31%) and access to working capital (22%).

Martin Coats, area director for MAS, commented: “If you compare findings with the similar period in 2012, you will see that firms are a lot more optimistic, with most key performance responses measured showing positive improvements.

“There appears to be a greater appetite from SMEs for investment in order to remain competitive and I think we are also seeing a desire to create jobs to meet expected demand.”

The second MAS Barometer of 2013 collected responses from manufacturing SMEs across Yorkshire and Humber providing an overview of economic conditions and issues faced by the sector from January to March this year.

The quarterly special focus concentrated on identifying barriers preventing companies taking on new orders and the impact this is having on business performance.

Companies said that turnover would increase – on average - by 19% if they could overcome the three main barriers quoted, whilst 61% admitted that new clients accounted for up to 25% of the missed opportunities.

This was posted in Bdaily's Members' News section by Mark Lane .