Smaller Manufacturing Firms Defy Predictions Of Slowdown In Sector

England's SME manufacturers have defied predictions of a slowdown in the sector to post increases in both current and predicted sales, it has been announced today.

New figures from the Manufacturing Advisory Service (MAS) found that 59% of small- and medium-sized businesses increased turnover in the previous six months – up from only 4% in the period before.

More than two thirds (70%) if the businesses surveyed expect further increases over the next quarter, with 54% planning to increase investments in new technology – the highest figure recorded in six years.

The MAS also looked at concerns held by SMEs in the manufacturing sector. Half cited regulation as their biggest burden, whereas a third cited salary pressures, securing investments, and problems recruiting.

Steven Barr, head of manufacturing at the Business Growth Service, said: "There have been concerns that manufacturing is slowing down, and GDP figures from the Office for National Statistics did indeed reveal a slight decline.

"I’m pleased to say that SME manufacturers are feeling more optimistic. Turnover for the last period has bounced back strongly and the outlook for future sales appears positive."

Expert Opinion

While the manufacturing sector as a whole has not had an easy few months, it is very positive to see that smaller businesses within the industry have been able to take advantage of opportunities and move forward. <br/> <br/>"It is very positive to see such confidence among manufacturing SMEs and it is vital that they seek advice and support as they look to further boost their operations and expand. Legal advice should be a key part of their support network as they look to reach the next level." Dorrien Peters - Partner