Manufacturing sector concerned over auto-enrolment

More than two fifths (42%) of the manufacturing companies surveyed are seriously concerned that auto enrolment will damage their businesses compared with a national average of 38 percent. The concern comes from a number of factors connected with auto enrolment for the manufacturing industry. Almost two thirds (61%) of the small manufacturers questioned are concerned about the cost of making employee contributions and the impact this will have on cash flow. Over half (57%) are concerned about the administrative burden it will place on them. These figures are significantly higher than the national averages of 40 per cent and 51 per cent respectively and significantly more than other sectors such as media and IT. Lee Perkins, managing director of Sage UKI's start-up and small business division, said: "Manufacturing forms a crucial part of the UK economy, responsible for around 12% of GDP, nine per cent of the workforce and a massive 46% of exports. While growth has recently returned to the sector, it is important that this is sustained through minimising unnecessary costs and red tape. "Auto-enrolment is looming large on the horizon for small businesses, but it isn't too late to keep its impact to a minimum. There are steps businesses can take to help reduce the time and cost pressures, including implementing the right software to help reduce the administrative burden." The government's pension initiative sees eligible employees aged between 22 and state pension age, who earns over £9,440 placed into a work pensions scheme. It began for large businesses in October 2012.