Eight in 10 (84%) of respondents to the latest Manufacturing Barometer indicated that they needed to improve productivity in the next six months if they were to achieve growth plans.
This is slightly up on six months ago (80%) and "highlights the need for more firms to take action to boost efficiencies, reduce waste and maximise the potential of their workforce and machinery", said the BGS.
More than half (55%) of the companies questioned reported a rise in sales during the last six months, with 70% indicating plans for expansion. The number of SME manufacturers looking to recruit increased to 55% (up 5% on previous quarter).
Almost all firms (95%) expected to maintain or increase their investment on machinery, premises and new technology, highlighting a commitment to continuous improvement.
Steven Barr (pictured), head of manufacturing at the Business Growth Service, commented: "There has been significant talk about productivity and this latest report proves that it is still an issue for English manufacturers.
"When we asked the same question two quarters ago, 80% felt their productivity needed to improve, yet just over half of those actually achieved their goal.
"This proves that there is plenty of room for improvement, but also shows a desire from our companies to not stand still… an important characteristic if industry in this country is going to build on the current period of growth."
He added: "Similar to the last Barometer, it is pleasing to see the appetite to take staff on continues to be strong, despite a small decline in the number of firms reporting increases in sales."
The Barometer is claimed to be the largest survey of its kind, reflecting the views of over 500 SME manufacturers across England, employing around 14,000 people.
The Business Growth Service brings together GrowthAccelerator and the Manufacturing Advisory Service, with additional elements from the Intellectual Property Office (Intellectual Property Audits) and the Design Council (Design Mentoring).
