Manufacturing SMEs needs to improve productivity to achieve growth targets, research finds

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25th June 2015 11:36 - Industrial

A recent survey, of small and medium sized manufacturers in the West Midlands, has discovered that 83 per cent of  the companies surveyed Manufacturing SMEs needs to improve productivity to achieve growth targets, research findsneed to increase productivity in the next 6 months, in order to hit their growth targets.

The latest Manufacturing Barometer for the Business Growth Service also discovered that manufacturers are still trying to find ways to increase productivity.

The findings of the latest Manufacturing Barometer – which is the largest survey of its kind - are not dissimilar from that of 6 months ago, with companies indicating that more businesses need to boost efficiency, reduce waste and increase the potential of their workforce and machinery.

However, 54 per cent of West Midland manufacturing firms said that they had seen an increase in sales over the last 6 months, with 69 per cent highlighting plans for expanding their business.

As well as this, job opportunities are arising in the sector, with 54 per cent of small and medium sized manufacturers expecting to hire new staff.

Of the companies surveyed, 95 per cent anticipate an increased spend on machinery, premises and technology, which indicates that there are plans for continuous improvement.

Area Director of the Manufacturing Advisory Service, Lorraine Holmes, said of the findings:

“There has been significant talk about productivity and this latest report proves that it is still an issue for English manufacturers.

“When we asked the same question two quarters ago 83% felt their productivity needed to improve, yet just under half of those actually achieved their goal.

“This proves that there is plenty of room for improvement, but also shows a desire from our companies to not stand still - an important characteristic if industry in this country is going to build on the current period of growth. Similar to the last Barometer, it is pleasing to see the appetite to take staff on continues to be strong, despite a decline in the number of firms reporting increases in sales.”

The Barometer looks at the opinions of 83 small and medium sized manufacturers throughout the West Midlands. The 83 companies in the survey employ roughly 2,171 people.

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