Manufacturing SME's see UK growth

The Manufacturing Advisory service has released some interesting data regarding the views of SME's involved in manufacturing, which bodes well for the UK economy. 

55% of the 607 companies questioned expect to grow between October and March 2013, with 41% of firms set to boost investment in plant and machinery. There was also a moderate increase in those planning to spend on new technology (38%).

This cautious optimism comes after a slight softening in the marketplace that has seen the number of businesses reporting increased sales drop to just 45%, down nearly 8% against the previous survey.

As part of the Special Focus, the Barometer also aimed to find out what sectors SMEs are selling into, with the findings showing materials/general engineering as the most popular (42%), closely followed by automotive (39%) and defence (35%).

When asked about future sales growth to 2016, aerospace, marine, off shore wind and rail appear to be attractive propositions for companies looking to increase moderate sales to a significant level.

Lorraine Holmes, Area Director for the Manufacturing Advisory Service (MAS), commented: “It’s reassuring to see more SMEs are expecting to increase their sales going forward and this despite a slight fall over the last six months.

Business Minister Michael Fallon said: "It's encouraging to hear of the optimism amongst manufacturing SMEs in this Barometer. Of course, these are still challenging times, but the recent GDP output is the latest sign yet that the wider economy is starting to recover.