Small firms have expressed confidence about future performance with two thirds expecting an increase in turnover.
The Manufacturing Advisory Service report, which covers over 500 small- to medium-sized enterprises (SMEs), found that half were considering recruiting new staff and the same number were looking to invest in new technology.
However, it wasn’t all good news, with many firms saying there are still a number of barriers to growth including regulations and having to pay higher salaries.
Also, over a third (34%) said their growth was hindered by the lack of availability and costs of suitable premises. This feeling was especially prevalent in London and the South East with the number rising to 39%.
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Exporters expecting growth
In another report, from the British Chambers of Commerce, it was found that 3 in 5 exporters are expecting their profits to increase this year.
John Longworth, Director General of the BCC, says that British exporters are rising to the challenge despite an uncertain global outlook.
Figures show that businesses that export grow 20% more than businesses that don’t.
Facts from the reports:
• 70% of SME manufacturers expected their turnover to increase in the next 6 months
• 33% of SME manufacturers said their growth was curtailed by a lack of available finance or investment.
• 32% of manufacturing employers admitting they could not find new recruits with the skills they need
• 30% said that cashflow hindered their future development.
• 76% feel their current sales strategy is important to growth
• 45% of SME manufacturers indicated that growth was supported by their ability to bring new products to market on time and within budget
• A third of exporting firms reported that the exchange rate is having an impact on their ability to trade globally
• The highest increase in exporting activity was recorded in Wales, London and Yorkshire & the Humber.
