Sales and investment on the rise as SME manufacturers in London and the South East defy slowdown
Small and medium sized manufacturers in London and the South East are defying predictions of a slowdown by reporting increases in current and predicted sales.
57% of the regional respondents to the latest Manufacturing Barometer have indicated that their turnover has continued to increase which is the same reported a year ago. Over two thirds (72%) expect further increases over the next quarter which is higher than the national response of 70%.
In further positive news, over half of firms (53%) are still looking to recruit and 58% said they were planning to increase investment in new technology – a 9% increase on the last quarter and the highest figure recorded in the six-year history of the Barometer indicating a movement towards more advanced manufacturing.
Hampshire-based GW Martin Machining Specialists supply machined components and assemblies to the aerospace, defence, automotive and electrical industries in the UK and overseas. Stuart Yalden, managing director said: “We are positive about the future and pleased to report a healthy order book to take us well into the next year. This gives us the confidence to commit to our investment strategy to develop the business with new equipment and systems, and importantly investment in the skills of our team.”
The specialist topic this time was ‘identifying barriers to growth’. Responses revealed that the burden of regulation and the pressure of paying higher salaries are the two main concerns for London and the South East SME manufacturing base.
Roger Churchill, managing director of Lohmann Technologies UK Ltd in Buckinghamshire, who provide high-tech bonding solutions for manufacturers commented: “Lohmann has seen continuous expansion since 2009, yielding a CAGR of 17.39% on sales growth. This has been achieved by continuous investment in people, machinery and buildings, allowing for future growth. The future looks very positive, with a strategic plan to double our business again over the next six years, but there are always risks and we are very focused on ensuring we deliver what our customers’ need, on time and in full.”
Business Minister Matthew Hancock said: “Small businesses have been at the forefront of our economic recovery and the findings show no sign this is slowing down. We are committed to making Britain the best place in the world to start and grow a business, which means backing manufacturers every step of the way. Our long-term economic plan is delivering and it’s clear that manufacturers are leading the way.”
