Manufacturing Barometer Results: Yorkshire and Humber

Transcription

1 Manufacturing Barometer Results: Yorkshire and Humber Q3 - October, November, December 2016 Surveyed in February SWMAS Ltd No part of this report may be reproduced without the express permission of SWMAS.

2 Contents UK Industrial Strategy Is the UK doing enough to build its reputation as a stable and predictable business environment? Introduction Business Aspirations Survey Demographics Measuring Trends Special Focus About the Manufacturing Barometer

3 Introduction Welcome to the latest Manufacturing Barometer collecting the results, views and opinions of manufacturing SME s. Senior decision makers within small and medium sized manufacturers have shared their views on UK Industrial Strategy and whether the UK is doing enough to build its reputation as a stable and predictable business environment. The Core Trends SME manufacturers across Yorkshire and Humber have remained resilient with 61% of firms experiencing an increase in sales turnover in the past six months, with a jump in future turnover expectations, increasing from 61% to 66%. Lorraine Holmes CEO Economic Growth Solutions Investment in both new technology and new machinery over the past six months have remained even with 40% reporting no change, however, firms are forecasting increased investment within the next 6 months, with over 54% expecting to increase their spend on machinery while 46% are expecting their spend on technology to increase in the next six months. Finally, 42% of firms are expecting their employment levels to remain the same in the next six months, while the 50% are expecting to increase their employment levels. This percentage shows there is still a significant number of businesses looking to recruit, which is great news for the sector and for the UK economy as a whole. The Special Focus In this quarter s survey we sought to understand SME manufacturers thoughts on UK Industrial Strategy. Continued Overleaf...

4 Introduction The Special Focus In this quarter s survey we sought to understand SME manufacturers thoughts on UK Industrial Strategy. Perhaps the key finding is that a surprising 46% of respondents, don't know whether UK Industrial Strategy is built to deliver their business needs, clearly showing their is a lack of visibility and understanding amongst SME manufacturers throughout the UK while 36% either completely disagree or disagree that the Industrial Strategy is built to deliver their business needs. When asked what should be the main focus for UK Industrial Strategy, R&D and Productivity were clearly high on the priority list for businesses, closely followed by Access to Growth Opportunities within the UK, Export and Operational Skills. Simon Howes Managing Director SWMAS Group Conclusions The overall picture seems clear - although remaining resilient, SME manufacturers are feeling disconnected from Industrial Strategy and considering SMEs make up over 90% of businesses in the UK, it is an issue that needs addressing. The budget with additional money for disruptive technology and new T-Levels to boost technical skills showed there is an appetite to support manufacturing and we d urge Government to listen to SMEs as we move forward.

5 To grow both our domestic and overseas markets, to diversify to minimise the effect of a recession and to significantly improve processes to ensure we are competitive. Racks Industries Ltd Grow out business employ and train people and keep make beautiful bikes. Field Cycles Limited Our aspirations is to continue to grow our business while maintaining the supportive and friendly atmosphere you get with a small business. Currently to survive a depression in demand coupled with increase in input costs, which sadly involves losing employees and selling assets. Business growth across multiple technical sectors. Drive our own training develop programs to ensure a pipeline of skilled people fit for purpose. Branch out nationally and internationally. Performance Engineered Solutions (PES) Ltd Business Aspirations

6 Survey Demographics 9.5% 4.8% 4.8% Chair of the Board 9.5% Finance Director Managing Director Operations Director Other 71.4% Over 70% of the respondents were managing directors. Individuals who are in the business, hands-on, running it day-to-day.

7 Survey Demographics Regional breakdown 4.8% 4.8% 7.1% 9.5% Humberside North Yorkshire South Yorkshire West Yorkshire 21.4% Yorkshire 52.4% East Riding of Yorkshire

8 Past Sales How has your sales turnover changed within the past 6 months? Much Reduced 7.1% Reduced 9.5% No Change 21.4% Increased 54.8% Much Increased 7.1% Q

9 Future Sales How do you expect your sales turnover to change over the next 6 months? Much Reduced 0.0% Reduced 16.7% No Change 16.7% Increased 59.5% Much Increased 7.1% Q

10 Past Employment How have staff numbers in your company changed in the past 6 months? Much Reduced 0.0% Reduced 11.9% No Change 42.9% Increased 45.2% Much Increased 0.0% Q

11 Future Employment How do you expect staff numbers in your company to change in the next 6 months? Much Reduced 0.0% Reduced 7.1% No Change 42.9% Increased 50.0% Much Increased 0.0% Q

12 Past Capital Investment How has your investment in new machinery/premises changed in the past 6 months? Much Reduced 0.0% Reduced 9.5% No Change 40.5% Increased 40.5% Much Increased 9.5% Q

13 Future Capital Investment How do you expect your investment in new machinery/premises to change in the next 6 months? Much Reduced 0.0% Reduced 9.5% No Change 35.7% Increased 45.2% Much Increased 9.5% Q

14 Past New Technology How has your investment in new technology changed in the past 6 months? Much Reduced 0.0% Reduced 2.4% No Change 61.9% Increased 31.0% Much Increased 4.8% Q

15 Future New Technology How do you expect your investment in new technology to change in the next 6 months? Much Reduced 0.0% Reduced 4.8% No Change 47.6% Increased 42.9% Much Increased 4.8% Q

16 Special Focus What key thing do you feel Government need to address to help better support the growth of UK manufacturing? Support the small innovators to grow - every successful idea was tiny once Better support for SME's - the demise of MAS is a prime example of idiotic strategy and total disregard for the needs of a small and growing specialist company

17 Special Focus What do you believe should be the main focus for UK Industrial Strategy? Access to finance Making it easier for foreign firms to invest in the UK Very Important Access to growth opportunities within the UK Process Innovation & Automation Fairly Important Skills - Operational Skills - Management Important Skills - Board Level Slightly Important Productivity Export Not at all important Research & Development 0% 20% 40% 60% 80% 100% Respondent numbers vary

18 Special Focus Do you believe current industrial strategy is built to deliver you business needs? Completely Disagree Disagree Don t know Agree Completely Agree 41 Respondents

19 About the Manufacturing Barometer The Manufacturing Barometer is a quarterly survey that charts the experiences of UK SME manufacturers. It is the largest survey of its kind and has informed both government industrial strategy and the national debate on manufacturing. Run by SWMAS since 2009 in the South West of England, the Manufacturing Barometer records trends in employment, turnover and investment. Each quarter, a special focus explores an issue in greater depth. In the past this has included issues such as productivity, overseas production and energy efficiency. Companies are able to use this quarterly Manufacturing Barometer to compare themselves against other firms within their sector or region. For more information please contact: info@swmas.co.uk