Member Article

MAS Barometer reveals Yorkshire and Humber manufacturers are ready to invest

Yorkshire and Humber manufacturing SMEs appear determined to meet the industry call for greater investment according to the latest Manufacturing Advisory Service (MAS) Barometer.

Nearly half (48%) of companies questioned expect to spend more on new machinery and premises over the next six months, a 7% rise on the same period last year.

There appears to be a similar appetite for embracing new technologies with 36% of firms indicating they will fund more activity in this area.

In further positive news for the sector, 62% of SME manufacturers reported an increase in sales in the first half of the year, with 70% predicting further growth over the next six months – a record high.

David Caddle, Yorkshire area director for the Manufacturing Advisory Service, commented: “Manufacturers tend to be very cautious and traditionally would need significant confidence in the long-term future to relax the purse strings.

“Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad.

“It is a reassuring finding and appears to meet the EEF’s recent call for the sector to fund more research, innovation and export growth.”

He added: “This sense of optimism is also present when it comes to employing new staff. 41% of SMEs are planning to hire new people with a further 48% expecting to keep workforce levels the same.”

The second MAS Barometer of 2013 collected responses from 81 manufacturing SMEs across Yorkshire and Humber, providing an overview of economic conditions and issues faced by the sector from April to June this year.

The regular quarterly special focus concentrated on finding out whether business growth could be linked to innovation.

79% of respondents reported that new products introduced over the last two years had led to new sales, with 34% reporting an increase in both sales and profits. Over a third of respondents (35%) reported that new sales accounted for 25% or more of their total turnover.

The Barometer also revealed that the majority of respondents are fulfilling the diverse requirements of the automotive, food and drink and oil and gas sectors. Defence, marine and rail are also generating strong demand.

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