Improving productivity is helping small and medium manufacturers in the West Midlands continue to grow and adapt to a general softening in the marketplace.
60% of firms say they expect to increase investment in new technology, machinery or premises in a bid to improve their productivity according to new figures.
The latest Manufacturing Advisory Service (MAS) Barometer revealed that 56% of companies report that they have already raised their productivity within the last six months, with 83% admitting further efficiency gains are necessary in order to remain competitive.
Cautious optimism remains the other overarching sentiment among the 65 respondents.
For the sixth successive quarterly report, more than half of manufacturers (61%) recorded an increase in sales, with a similar figure (62%) expecting to grow between now and the end of March 2015.
Furthermore, 98% of West Midlands firms are planning to either maintain or increase their workforce, highlighting the determination to retain skills and build capacity across the supply chain.
Business Minister Matthew Hancock said: ÂBritain's small manufacturers are driving our economic recovery, boosting our national productivity and helping create a record number of jobs. This is part of our long term economic plan to build a better Britain."
Lorraine Holmes, Area Director of the Manufacturing Advisory Service, commented:
ÂOur Barometer shows that manufacturers are already responding to recent observations by the Bank of England (BoE) that productivity needs to be raised.
ÂIt is also reassuring that itÂs not just the large manufacturers who understand what makes them competitive. Our small and medium firms have also recognised the importance of continually improving productivity.Â
She continued: ÂThis could include anything from introducing new processes and eliminating waste, to upskilling staff and investing in technology and state-of-the-art machinery.
ÂManagement teams are continually looking to get more out of the business, a feature that will become increasingly important with the market showing some signs of softening.Â
The MAS Barometer is the largest survey of its kind, sharing the views of small and medium manufacturers across England.
Approach to productivity was the special focus and drilled down into how each sector is tackling the issue, with automotive, construction and materials/general engineering showing the biggest gains.
Going forward, some marketplaces stand out more than others, with 91% of aerospace manufacturers indicating they are looking to improve productivity even further, followed closely by those supplying into electronics.
Lorraine concluded: ÂOur manufacturing advisors are continually working with management teams on the ground to help them understand market forces and plan steps to make them more competitive, especially against international rivals.Â
For further information, please visit www.mymas.org or follow @mas_works on twitter. If you are looking for a copy of the full report, please email barometer@mymas.org
