Engineering news
Improving productivity is helping small and medium manufacturers in England continue to grow and adapt to a softening in the marketplace, according to the latest Manufacturing Advisory Service Barometer.
The survey of 858 small and medium manufacturers found that 69% of firms say they expect to increase investment in new technology, machinery or premises in a bid to improve their productivity.
The MAS figures revealed that 57% of companies report that they have already raised their productivity within the past six months, with 80% admitting further efficiency gains are necessary in order to remain competitive.
For the sixth successive quarterly report, more than half of manufacturers (55%) recorded an increase in sales, with 67% expecting to grow between now and the end of March 2015.
In addition, 95% of firms are planning to either maintain or increase their workforce.
Steven Barr, head of MAS, said: “Our barometer shows that manufacturers are already responding to recent observations by the Bank of England that productivity needs to be raised.
“It is also reassuring that it’s not just the large manufacturers who understand what makes them competitive. Our small and medium firms have also recognised the importance of continually improving productivity.”
He continued: “This could include anything from introducing new processes and eliminating waste, to upskilling staff and investing in technology and state-of-the-art machinery.
“Management teams are continually looking to get more out of the business, a feature that will become increasingly important with the market showing some signs of softening.”
However, PP Electrical Systems managing director Tony Hague told PE that this is not his experience of the market. “The UK has an epidemic problem surrounding investment in robotics and automation – we are the bottom of the table in Europe. Companies have a short-term view, they expect a return of investment within 2-3 years, and there is also a lack of finance.”
But Hague's company has invested £1 million in the latest machinery and has launched an in-house training school.
The MAS survey found that manufacturers in the chemical, food, automotive and pharmaceutical sectors showed the biggest productivity gains.
Going forward, some marketplaces stand out more than others, with 85% of food manufacturers indicating they are looking to improve productivity even further, with pharmaceutical and aerospace joint second with 83% each.
Hague concluded: “Cautiously optimistic is a phrase I've heard a lot of companies use. It's been a year where things have happened not quite the way people wanted. The first half of the year didn't live up to expectations, but we are now seeing things ramp up, with firm orders rather than just talk.
"I am more optimistic going into 2015 than I was going into 2014. Looking forward, there is a possibility that the impending general election could cause instability, but overall manufacturing is in a good place.”
The MAS Barometer is the largest survey of its kind, sharing the views of manufacturers employing more than 20,000 people.