SMEs defying doom and gloom says MAS
1 min read
Manufacturing SMEs in England are defying reports of an economic slump to register rising sales and target future growth, the Manufacturing Advisory Service's (MAS) National Barometer has revealed.
Over 50% of the 700 manufacturers surveyed reported a spike in orders in the last six months.
The mood was bullish over further growth with 53% backing an prolonged upturn in the back end of 2012.
The confidence is leading to jobs growth, MAS found.
A third of the companies surveyed outlined plans to hire for new posts with 55% are expecting the size of their workforce to stay the same.
However, there does appear to be a potential slowdown in order books, MAS reported,
Only 40% of respondents noted an increase in enquiries, compared with 49% in the last Barometer.
The number of companies considering investment in new machinery and premises over the next six months also fell from 44% to 38%.
David Caddle, MAS area director, commented: "The results are still showing positive signs of growth and expansion, although there are indications among SME manufacturers in England of a more cautious outlook going forward."
"This is not unexpected when you consider the recent economic forecasts and, historically, it takes a little longer for the slowdown to cascade its way down the supply chain and to the smaller companies."
He added: "However, we have to make sure we don't talk ourselves into another downturn."
Business minister Mark Prisk said: "This latest MAS Barometer shows that many small manufacturing firms across the UK are growing and expect to continue to grow despite the challenging wider economic environment."
