Manufacturing SMEs plan investment to meet growing demand

Companies are set to invest an average of £112,000 in their businesses over the next 12 months, finds survey

Most smaller manufacturers expect to invest in their businesses in the coming months in order to meet expected new demand, according to a study by the Manufacturing Advisory Service.

The survey of more than 800 small to medium-sized manufacturers in England found that most planned to invest in equipment, with companies looking to spend an average of £112,000.

It found that 66% of firms are looking to purchase new plant and machinery, while just over half are focused on upgrading IT/communication infrastructure and 31% on improving their premises.

Almost two-thirds reported an increase in sales in the past six months, and three out of four expected the trend to continue between now and the summer.

Steven Barr, head of MAS, said: "There is a definite feel-good factor around English manufacturing at the moment and these latest figures reinforce positive reports from the Society of Motor Manufacturers and Traders together with encouraging Purchasing and Managers' Index data.

"Investment is crucial if we are going to take advantage of reshoring and predicted growth in markets such as offshore wind, renewables and low-carbon vehicles."

Business and energy minister, Michael Fallon, added: "These figures point towards signs of a renaissance in manufacturing. SMEs are increasing in confidence, and looking to both recruit and invest.

“We're committed to working closely with the manufacturing sector to provide a strong base for the recovery, and create growth for the future."