MAS area director for London and the south-east David Caddle welcomes news optimism among SME manufacturers is rising.
MAS area director for London and the south-east David Caddle
MAS area director for London and the south-east David Caddle welcomes news optimism among SME manufacturers is rising.
Fresh figures have added to the growing collection of data indicating manufacturing in the south-east of the UK is improving.
The latest report from the Department for Business, Innovation and Skills-funded Manufacturing Advisory Service (MAS) has revealed that small and medium-sized enterprises (SMEs) in the manufacturing sector in London and the south-east of England are optimistic about growth this year.
This is from the latest MAS Barometer, which was presented by business secretary Vince Cable at the government’s Manufacturing Summit last week and shows the outlook for SME producers is encouraging, with 65 per cent of more than 700 respondents anticipating their sales turnover will expand between now and June 2013.
The expected growth is supported by the number of companies predicting they will be upping their recruitment, with 41 per cent expecting to take on staff this year, while 43 per cent say they will be investing in new premises and machinery in the coming months.
However, more than one-third (36 per cent) of respondents in the south-east and London cited the availability of specific skills as being a major obstacle the industry needs to overcome this year.
MAS area director for London and the south-east David Caddle welcomed the report, but acknowledged that this is no time for the sector to rest in its laurels.
He said: “The overwhelming feeling is one of positivity and it’s excellent to see our region’s manufacturers sending out a powerful message and highlighting their determination to explore new opportunities for growth in 2013.
“Our findings show that there’s still work to do, but we need to ensure that recent optimism is just the start.”
Director of East Sussex-based ModMyPi, specialists in 3D design and the UK manufacturing of Raspberry Pi Cases, Jacob Marsh stated that over the past six months his firm has witnessed a rise in sales turnover and is expecting further growth in the months to come.
He agreed that the gap in skills remains to be an issue not just for ModMyPi but for UK manufacturing as a whole. However, Mr Marsh is tackling this issue head on by recruiting new members to his team in addition to providing training for his existing workforce.
“In the meantime, working with MAS provided support and expertise in areas that I had no or limited experience in - which was invaluable in terms of gaining a competitive edge in the market and growing my business during a challenging climate,” he added.
The MAS report was published the day before the official Markit purchasing managers’ index (PMI) for UK manufacturing, which showed little change as producers continue to battle against the headwinds of the global economic downturn.
The key PMI data showed that output continued to slow in February as both domestic and foreign demand dropped, however there was a reversal of fortunes on input prices, which saw manufacturers pass costs on to suppliers last month.
