Small to medium-size manufacturers in the UK appear to be getting to grips with the ‘productivity puzzle’, according to a new report that says 52% of the 270 SMEs questioned in the National Manufacturing Barometer have increased their productivity over the last six months, and 68% of them expect another performance boost between now and the end of the year.
The survey, conducted by SWMAS Group (part of the Exelin Group) in partnership with Economic Growth Solutions (EGS), also revealed renewed optimism among firms, with 61% recording an increase in turnover; this is 4% up on the previous quarter and 13% up on the same period last year.
There was also a 7% rise in the number of manufacturers that have recruited (44%), although investment in machinery and new technology has remained the same.
Simon Howes, managing director of Exelin Group, said: “Productivity never seems to be out of the media spotlight at the moment, so it is pleasing to see that SMEs are showing signs of bridging the gap. The National Manufacturing Barometer is painting a positive picture yet again, defying early rumours of a slowdown in UK manufacturing.
“Don’t get me wrong, there are challenges on the horizon, and we still need to see how the Brexit negotiations are going to play out. However, what manufacturers are telling us is that they are not waiting to see what might happen, they’re out there fighting to win new work, creating new jobs and finding answers to the productivity puzzle.”
Companies were also asked about barriers to employing new talent; unsurprisingly, their top-three responses were ‘lack of industry-specific skills’, ‘geographical location’ and ‘pressure of paying higher salaries’.
Further information can be found at the Web site (
www.swmas.co.uk/knowledge/manufacturing-barometer).