Heartbeat survey

Despite 77% of business owners in the manufacturing sector believing that they run innovative organisations, a third feel the current economic climate is hindering their ability to innovate. Additionally, only 46% said that the economy is strong (one of the lowest across all sectors), compared to a national average of 57%. The figures also revealed that 73% of manufacturers feel that their customers demand constant innovation, but only 52% of those surveyed were going to launch a new product over the next twelve months. The top three reasons for lack of innovation were: - Lack of time to dedicate (57%) - Lack of money to invest (54%) - Government 'red tape' (29%) Skills shortages was also an area of concern for the manufacturing industry. When asked if they felt there was a lack of skilled people in their business, a resounding 48% felt that there was. Sixty-nine percent also felt that the standard of education and level of qualifications had fallen in recent years too. Despite the concern surrounding skill levels, passion for business is still high with 57% of the 285 manufacturing respondents stating that they would start-up all over again if they had the chance. However, over half (52%) cited work-life balance as the main factor that would put them off starting again. Government red tape tops the list of what manufacturing business owners hate most about running their own business (59%), followed by the pressure of running a business (44%). When asked about what they loved about business, manufacturing bosses claimed that working for themselves (53%) and the ability to work their own hours (45%) as top motivators. “The Heartbeat survey highlighted that innovation is hugely important in the manufacturing sector, for both businesses and customers alike. However the perception is that the current economic climate is hindering it,” says David Pinches, head of product management, mid market division, Sage (UK). “Sage has been working with manufacturing companies for 25 years and through our customer base of over 650,000 businesses we understand the issues they face. Everything we do is aimed at helping business owners save time and money so they can retain the passion for what they originally set out to do and continue to innovate.”