2019/2020 MHA Manufacturing and Engineering Report
Our MHA Manufacturing & Engineering Report is a go-to report when it comes to understanding the sector, its opportunities and challenges.
This years’ report reveals that while global economic conditions, Brexit/ future trading tariffs and staff shortages impacted growth, SMEs remain buoyant and they’re building resilience by increasing their assets, reducing borrowing and re-evaluating supply chains.
To compile this report, we benchmark SMEs across the UK to paint a national picture of the Manufacturing and Engineering sector.Read the full report
To broaden the content and make it more useful as a benchmarking exercise, the methodology involved a qualitative and quantitative approach. In addition to collecting responses to our survey, we compared this to an in-depth analysis of over 1,000 UK companies undertaken by our Data Insights team.
There are some key findings identified across the sector within the report:
- Revenue has grown year on year, although growth has decreased
- Growth in Net Assets has risen from 9.97bn in 2017 to £10.49bn in 2018
- Borrowing is down 58%
- Post-Brexit trading: 61% of our clients have a Brexit strategy in place
- 78% have difficulty recruiting appropriately skilled staff
- 64% invest up to 8% on R&D
- 13% stated a lack of financial backing to invest
“Manufacturing is of course integral to the success of the UK economy, which is why I am encouraged to see that many manufacturers continue to deliver growth and demonstrate resilience, despite the ongoing uncertainty in the operating environment. However, the sector’s skills shortage remains one of the biggest challenges and one that it is working hard to overcome. “Dave Atkinson, Head of Manufacturing, SME, Commerical Banking (Lloyds Bank)
Our latest report is sponsored by Lloyds Bank in conjunction with the Institution of Mechanical Engineers (IMechE) and features contributions from:
- Chris Barlow, Head of the Manufacturing Group, (MHA)
- Dave Atkinson, Head of Manufacturing, SME, Commerical Banking (Lloyds Bank)
- Matt Rooney, Engineering Policy Adviser (IMechE)
- Professor Sam Turner, Chief Technology Officer (CTO) (High Value Manufacturing (HVM) Catapult)
- Rhys Herbet, Senior Economist in the Research Department (Lloyds Bank Commercial Banking)
- Dominic Murphy, CEO (MyLMI)
If you would like to discuss any of the issues raised in the report in the context of your business, please contact one of our team on 01903 234094.