SME manufacturers in the UK are more confident around revenue growth. This is despite Brexit uncertainties, skills shortages and production cost rises.
The Manufacturing & Engineering report was compiled by the Manufacturing group at MHA, our national association, and supported by Lloyds Commercial Banking. It draws on national and regional insight from over 450 businesses, including 60 from the South Coast. The findings of our recent survey identified opportunities and concerns facing UK manufacturing and engineering businesses.
Despite uncertainty over Brexit, the majority of businesses have managed to achieve growth over the past 12 months and the sector remains optimistic about the future.
The report also provides expert commentary from Philippa Oldham CEng MIMechE, Head of Transport and Manufacturing at the Institution of Mechanical Engineers and Sir John O’Reilly, chairman of The ERA Foundation and government adviser on manufacturing and engineering.
- 69% of manufacturers reported revenue growth over last 12 months – up 10 percentage points from last year.
- 78% of manufacturing businesses predicting revenue growth over the next 12 months.
- 94% expect further increase in production costs and growing number of businesses see these being passed to customers.
- Brexit uncertainty is a significant barrier to growth.
- Nationally, 20% of respondents stated that they have lost staff or are at risk of losing staff from the EU because of Brexit. Locally, the figure is closer to 30%.
- Three quarters of manufacturers say they cannot recruit appropriately skilled staff and have called for government action to expand skills training at all levels of education.
- Manufacturers are starting to understand Industry 4.0 opportunities and are looking to government for more tax breaks to help them to accelerate the necessary investment.
Find out more at METALL #6
Join us next month at our next METALL meeting for additional commentary from Philippa Oldham, IMechE’s Head of Manufacturing and Transport. She will delve into the findings of the report based on survey data which included a number of businesses from across the South Coast.
19th October • 8am • South Lodge, Horsham
Philippa’s insight around policy and her common sense approach to helping the sector to help itself can be both informing and thought provoking.
Last year’s event was a sell out, so please sign up as soon as possible.
If you would like to discuss the findings of the report in the context of your own business, please get in touch with Chris Coopey, Head of Manufacturing at MHA Carpenter Box, or fill in the form below.
A version of this blog originally appeared on the website of our MHA association.