The latest Manufacturing Barometer from the Business Growth Service indicates that SMEs in London and the South East are “defying predictions of a slowdown” by reporting increases in current and predicted sales.

A total of 57% of respondents to the survey said that their turnover has continued to increase. Meanwhile, 72% expect further increases in turnover over the next three months; this is higher than the national
average of 70%.

In further positive news, 53% are looking to recruit, and 58% say they are planning to increase their investment in new technology; this is a 9% increase on the previous quarter and the highest figure recorded in the six-year history of the Barometer.

Steven Barr, head of manufacturing at the Business Growth Service, said: “There has been concern that manufacturing is slowing down, but this is not the case for SMEs.

Record investment plans in technology from these manufacturers are welcomed. This shows that they recognise the need to spend to compete globally, to offer unique processes and technologies to establish themselves on the added-value chain.

“Any slowdown by the bigger manufacturers will take a while to cascade down the supply chain, and we have to be mindful that there might be a delayed reaction to the predicted slowdown. At the moment, though, the news is very positive.”

The Barometer is the largest survey of its kind, reflecting the views of 546 SME manufacturers across England, employing over 16,000 people.

The response in London and the South East represented the views of 144 manufacturers. The Business Growth Service was launched in December by the Business Department; it brings together the Growth Accelerator and the Manufacturing Advisory Service.