South West manufacturers are showing encouraging signs of growth, according to the latest findings of the Manufacturing Advisory Service in the South West (MAS-SW).
Almost two-thirds (63 per cent) of respondents to the latest Barometer, conducted quarterly by MAS-SW, reported increased sales in the past six months (April to September 2011).
The Manufacturing Barometer, which is designed to provide a snapshot of regional manufacturing trends as well as an overview of economic conditions and sector issues, reflects encouraging growth over the last six months. Manufacturers reported an increase in six-monthly sales during the quarter July to September, compared to 55 per cent in the previous quarter (April to June) and 53 per cent in the same quarter last year. However, when asked about the future, more than half (55 per cent) of respondents said they saw finance as being the main barrier to growing their businesses.
The trend for employment over the next six months is particularly positive against the national outlook, with 39 per cent of respondents expecting to increase staff numbers. Over half also expect their headcount to remain the same, meaning that overall, 90 per cent expect to increase their workforce or keep it at the same level. These statistics are even more encouraging given that figures published in the British Chambers of Commerce’s Quarterly Economic Survey earlier this month revealed little optimism about present or future recruitment prospects.
MAS-SW’s Barometer also revealed that:
- Nearly half of respondents expect to increase their investment in technology over the next six months. This is a rise from 34 per cent in the previous quarter and 29 per cent one year ago.
- 47 per cent reported an increase in enquiry levels compared with six months ago, which is a significant rise from the 37 per cent recorded in the previous quarter.
- 48 per cent expect to increase sales turnover over the next six months, which is down from 57 per cent in the previous quarter.
Commenting on the findings managing director Simon Howes, MAS-SW, said: “While economic conditions remain challenging, it is encouraging to see growth over the last six months in South West manufacturing. The majority of Barometer respondents appear to be sustaining enquiry levels and output while a significant proportion are planning to invest in people and technology.
“However, it is interesting to note the disparity between the increase in sales and enquiry levels reported over the last six months against the reduction in expectations for the months ahead. Manufacturers are understandably cautious about their prospects but there are genuine reasons to be confident and bullish about the future.
"The Government is committed to helping manufacturers to prosper, as was borne out by Minister for Business, Mark Prisk’s announcement of a new, nationally-operated Manufacturing Advisory Service (MAS) focused on driving growth, which our network of local specialists will continue to deliver in the South West,” he said
Pictured: Simon Howes
