Small to medium sized manufacturers in the UK appear to be getting to grips with the ‘productivity puzzle’ according to a new report. 52% of the 270 SMEs questioned in the National Manufacturing Barometer say they have increased productivity over the last six months, with 68% expecting another performance boost between now and the end of 2017. The survey, conducted by SWMAS Group in partnership with Economic Growth Solutions (EGS), also revealed renewed optimism amongst firms, with 61% recording an increase in turnover, 4% up on the previous quarter and 13% up on the same period last year. There was also a 7% rise in the number of manufacturers that have recruited to 44%, whilst investment in machinery and new technology has remained the same. Simon Howes, managing director of Exelin Group, said: “Productivity never seems to be out of the media spotlight at the moment so it is pleasing to see that SMEs are showing signs of bridging the gap. 52% of respondents tell us they have either achieved an increase or significant increase over the last six months and this may be contributing to the upbeat sales and recruitment figures we are also seeing.” He continued: “The National Manufacturing Barometer is painting a positive picture yet again, defying early rumours of a slowdown in UK manufacturing. Don’t get me wrong, there are challenges on the horizon and we still need to fully see how the Brexit negotiations are going to play out. “However, what manufacturers are telling us is that they are not sitting back and seeing what might happen; they’re out there fighting to win new work, creating new jobs and finding answers to the productivity puzzle.” Productivity was the special focus of this quarter’s National Barometer, with companies also asked to outline some of the key challenges they face when looking to solve the ‘puzzle’. 54% of SMEs cited skills and expertise as the biggest hurdle holding them back, whilst exactly half said workforce efficiencies. Available machinery and supply chain efficiency were viewed as other difficult areas preventing them from increasing performance. SWMAS Group www.swmas.co.uk/knowledge/manufacturing-barometer Michael Tyrrell Author Michael Tyrrell Digital Coordinator Tags SWMAS Group Share This Article Tweet Share Share Share Subscribe to our FREE Newsletter Related Articles British manufacturers are moving supplier bases from EU to UK Brexit concerns stifling manufacturers’ growth ambitions Barometer shows that manufacturers must improve productivity to meet expected sales and profit growth Most recent Articles All change at Bowers Group Subcontract market drops by 15% in Q3 and is down 47% year-on-year Mazak declares EMO 2019 an ‘enormous success’ Share This Article Tweet Share Share Share Subscribe to our FREE Newsletter
Barometer shows that manufacturers must improve productivity to meet expected sales and profit growth
