A new report has revealed that small and medium-size enterprises (SMEs) in the manufacturing sector are planning to take on more staff in a bid to boost productivity and sales.

The National Manufacturing Barometer, conducted by SWMAS (part of Exelin Group) in partnership with Economic Growth
Solutions, questioned almost 300 manufacturing SME leaders on the current economic picture, with 53% of them expressing their intention to hire more employees over the next six months — 5% up on the last quarter and the highest figure reported for over two years.

Furthermore, the quarterly survey reported that 60% of manufacturers saw an increase in sales, while 68% expected orders to rise between now and the end of the year.

That said, investment ‘aspirations’ were slightly down on the last report but still regarded as healthy, with just under half (48%) planning to spend on new machinery and premises.

Simon Howes, CEO of Exelin Group (www.exelin.co.uk) , said: “The need to focus on recruitment comes as no surprise and reflects what manufacturers are telling us about their concerns around productivity and the availability of people.

The analysis of the key trends and comments in this quarter’s Barometer points to firm intentions of growth, improved productivity and increasing profitability.

“Small to medium-size manufacturers have retained a strong sense of pragmatic optimism and are clearly thinking of their pipeline of skilled and motivated employees, when it comes to the stability and growth of their businesses.

"Moving closer to the new industrial and post-Brexit landscape, the need for a wide strategic view of productivity has never been greater.”

Further details of the report can be found at the Web site (www.swmas.co.uk/knowledge/manufacturing-barometer).