Manufacturing Barometer Results:

Transcription

1 Manufacturing Barometer Results: Q3 - October, November, December 2016 West Midlands 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 the West Midlands have remained resilient with 66% of firms experiencing an increase in sales turnover in the past six months, with an additional jump in future turnover expectations, increasing from 66% to 67%. Lorraine Holmes CEO Economic Growth Solutions Investment in both new technology and new machinery over the past six months have remained even with 35% reporting no change, however, firms are forecasting increased investment within the next 6 months, with over 60% expecting to increase their spend on machinery while 44% are expecting to increase their spend on technology in the next six months. Finally, 51% of firms are expecting their employment levels to remain the same in the next six months, while 45% 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 35% 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 38% 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 Continued profitable growth. Our turnover has grown 5 fold in the last 3 years and we anticipate continued growth. AR Aerospace To improve productivity, efficiency and profitability. Moldwel Products Ltd We continue to push into new customers in our market by developing colours for Automotive ahead of our competitors. To purchase new premises and grow to move into aerospace sector by further investment in plant and technology. Market penetration of inventory management and supply chain management solutions to end users and as wrap around through distributors. Increase turnover with disruptive technology to 5million within 5 years. Inventor-e Limited Business Aspirations

6 Survey Demographics 16.1% 6.5% Chair of the Board 6.5% Managing Director Operations Director 71.0% Other 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 6.5% 3.2% 3.2% 9.7% Herefordshire Shropshire 12.9% Staffordshire Warwickshire Worcestershire 64.5% West Midlands

8 Past Sales How has your sales turnover changed within the past 6 months? Much Reduced 6.5% Reduced 9.7% No Change 16.1% Increased 54.8% Much Increased 12.9% Q

9 Future Sales How do you expect your sales turnover to change over the next 6 months? Much Reduced 3.2% Reduced 6.5% No Change 22.6% Increased 58.1% Much Increased 9.7% Q

10 Past Employment How have staff numbers in your company changed in the past 6 months? Much Reduced 0.0% Reduced 12.9% No Change 45.2% Increased 41.9% 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 3.2% No Change 51.6% Increased 45.2% 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 9.7% No Change 35.5% Increased 45.2% Much Increased 9.7% 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 6.5% No Change 32.3% Increased 54.8% Much Increased 6.5% Q

14 Past New Technology How has your investment in new technology changed in the past 6 months? Much Reduced 3.2% Reduced 3.2% No Change 45.2% Increased 45.2% Much Increased 3.2% Q

15 Future New Technology How do you expect your investment in new technology to change in the next 6 months? Much Reduced 3.2% Reduced 3.2% No Change 48.4% Increased 38.7% Much Increased 6.5% Q

16 Special Focus What key thing do you feel Government need to address to help better support the growth of UK manufacturing? More support for commercially executable product developments One stop shop and real financial / skill support to companies

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 Fairly Important Process Innovation & Automation Skills - Operational Important Skills - Management 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

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