South: MAS Barometer shows ‘growth’ still there for English manufacturers

By TBM Team

23 August 2012

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Manufacturing SMEs in England are still reporting increased sales and predicting future growth despite recent reports of an industry downturn.

53% of respondents to the latest Manufacturing Advisory Service (MAS) National Barometer have seen orders grow in the past six months with the same number (53%) anticipating a further upturn between now and the end of the year.

A third of the companies surveyed are looking to create new jobs, 55% are expecting the size of their workforce to stay the same and 71% are looking to boost their turnover through exporting in the next eighteen months.

In line with recent surveys, there does appear to be a softening in the marketplace with only 40% of respondents seeing an increase in enquiries, compared with 49% in the last Barometer.

The number of companies considering investment in new machinery and premises over the next six months is also down from 44% to 38%.

David Caddle, MAS area director, commented: “The results are still showing positive signs of growth and expansion, although there are indications among SME manufacturers in England of a more cautious outlook going forward.

“This is not unexpected when you consider the recent economic forecasts and, historically, it takes a little longer for the slowdown to cascade its way down the supply chain and to the smaller companies.”

He added: “However, we have to make sure we don’t talk ourselves into another downturn. The Barometer features responses from key decision makers at over 700 companies, representing more than 28,000 employees. It is carried out quarterly, giving us a smoother picture of sentiment as opposed to some monthly findings that can be swayed by external influences, such as the Jubilee.

And the majority are saying to us they are growing and expect this to continue over the next six months.”

Business minister Mark Prisk said: "This latest MAS Barometer shows that many small manufacturing firms across the UK are growing and expect to continue to grow despite the challenging wider economic environment.

“The Government is committed to helping manufacturers make the most of the opportunities for growth and job creation through our continued investment in MAS."

This is the second National Barometer conducted by MAS and provides a snapshot of trends in English manufacturing SMEs from April to June 2012, as well as an overview of economic conditions and issues faced by the sector.

Export was the specialist focus for this report and, despite turmoil within the Eurozone, 71% of firms are aspiring to increase international orders, with more than one in ten expecting to boost turnover by 50% between now and 2013.

41% believe the biggest challenge to succeeding overseas is being able to generate sales, followed by selecting an agent/distributor (17%) and fluctuations in exchange rates (13%).

In terms of manufacturing issues, securing competitive production costs was listed as the biggest worry (50%), with after sales support (19%) and meeting different international standards (14%) the other most common concerns.

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