SME manufacturers optimistic about 2013 growth

That's the key finding from the annual SME manufacturing survey by MHA, a group representing independent accountants and business advisors. The figures are similar to responses last year, when 78% predicted growth during 2012, and 33% expected it to increase by more than 10%. Their predictions were accurate: asked about their results, 67% of respondents saw growth in 2012 and 33% had revenue increases of 10% or more. SMEs no longer rely solely on the domestic market for orders: 71% said they are exporting products, with the eurozone the most popular destination, followed by Asia and North America. However, the survey revealed there are barriers to exporting – top reasons cited were sourcing and understanding local partners, followed by regulatory issues in export locations, funding and cash flow. The findings also signalled that SMEs intend to spend more on R&D. Almost half of SME manufacturers (47%) will invest up to 2% of turnover in R&D this year, up from 37% last year. Chris Coopey (pictured), head of manufacturing at MHA, said that while the projected R&D spend is welcome, too few SMEs understand how to claim tax benefits, or how schemes such as the Patent Box work. Just 46% of respondents said they intend to make a tax claim; half had no knowledge of the Patent Box nor how it could benefit their business. "HMRC must do more to help companies understand tax credits," said Coopey. "The revenue has acknowledged that there is uncertainty from businesses about what they can claim for and when. We can encourage our own clients, but HMRC could do better to encourage the sector to take advantage of the higher rates of relief available."