Of the 105 SME manufacturers questioned for the survey, Attitudes to Business Investment, 93% cited increasing efficiency levels to improve productivity as a key investment driver, while 89% are investing to improve their competitive position. This compares with the wider economy where increasing profitability was the main reason given.
Ian Isaac (pictured), head of Lombard, said: "The approach being taken by manufacturers suggests that the sector is looking at the longer term and at what is required to establish sustained growth for the future, not simply for the here and now.
"Ahead of the Treasury's report on productivity, UK manufacturers certainly appear to have learnt lessons from the past and are now leading the way for the economy as a whole."
The survey also found that 99% of respondents were investing the same or more as a year ago, with nearly three quarters (71%) increasing investment by 25% or more.
Technology is an important factor. Around three quarters (76%) said that their business could benefit from improved tech (compared with 67% across all sectors), while 86% thought the Government could do more to encourage technology investment/innovation.
When it comes to funding business investment, nearly 60% of manufacturers had used more than one funding method to meet different capital investment needs within their businesses.
Lombard said: "This suggests that the sector is informed of the benefits of having a portfolio of funding. When it comes to asset finance, seven in ten (70%) of manufacturers have used this form of funding in the past, compared with just over half of respondents from other sectors. And among those manufacturers that haven't used asset finance in the past, nearly half (48%) said they would use it if they had more information about how it could benefit their business.
