The quarterly SME Manufacturing Barometer is the UK's widest-ranging survey of the SME manufacturing sector, conducted by SWMAS and Economic Growth Solutions Ltd. Almost a fifth of manufacturers said they expect a reduction in sales in the run up to March 2019, coupled with the fact that over a quarter (28%) have already reported a reduction in sales in the last six months.
Over 400 senior decision makers answered, commenting on a range of subjects and issues including sales figures, profits, investments, staffing levels and readiness for Brexit. When asked about the profit outlook for their companies, just 39% said they anticipated an increase in the next six months, with just under a quarter (24%) forecasting a reduction.
The survey found that 51% of UK SME manufacturers surveyed expect their sales turnover to increase in the next six months, a 13% drop from last year. This drop in confidence is also evidenced by just 37% set to increase the investment in their businesses, dropping from last quarter's 52%, with just 34% aiming to recruit more staff, a fall of 12%.
Simon Howes, managing director of SWMAS, said: "What we are clearly witnessing is manufacturers putting the brakes on new investments and recruitment whilst some enter survival mode caused by ongoing Brexit uncertainties.
"However, we are also seeing signs that suggests our SME manufacturers are looking at their own ways to change and adapt to meet the Brexit challenge, such as intentions to start exporting or to export more, development of new products and improvements in efficiency and productivity."
