Half of SMEs in England questioned expect to invest in machinery and premises in the next six months according to the latest Manufacturing Advisory Service (MAS) Barometer. This represents a 12% rise on the same period last year and comes as SMEs aim to meet increased industry demand.
Of the 682 companies surveyed, 40% indicated that they would direct funding to embrace new technologies within the industry.
Employment within SMEs is also set to rise, with 43% planning to recruit, a 3% increase on the previous report, while a further 50% expect to keep workforce levels the same.
Greater levels of positivity amongst SME manufacturers is the result of strong sales in the first half of the year, with 53% of companies surveyed reporting an increase. An all-time National Barometer high of 67% also predicts further growth for the remainder of the year.
David Caddle, Area Director for MAS, commented, “Manufacturers tend to be very cautious and traditionally would have needed significant confidence in the long-term future to relax the purse strings.
“Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad.
“It is a reassuring finding and appears to meet the EEF’s recent call for the sector to fund more research, innovation and export growth.”
Business and Energy Minister, Michael Fallon MP, said, “These findings are the latest indication that the economy is starting to head in the right direction, as we move from rescue to recovery. It is particularly encouraging to see that confidence is returning and manufacturers are becoming more optimistic about their future growth.”
Click through to learn more about the Manufacturing Advisory Service and the Barometer.
