Getting to grips with the 'productivity puzzle'
SME manufacturers in the UK appear to be getting to grips with the 'productivity puzzle', says the latest National Manufacturing Barometer.
The survey reveals that more than half (52%) of the 270 SMEs questioned say they have increased productivity over the last six months, with 68% expecting another performance boost between now and the end of the year.
Simon Howes, managing director of Exelin Group, said: “The National Manufacturing Barometer is painting a positive picture yet again, defying early rumours of a slowdown in UK manufacturing. Don't get me wrong, there are challenges on the horizon and we still need to fully see how the Brexit negotiations are going to play out.”
“However, what manufacturers are telling us is that they are not sitting back and seeing what might happen, they're out there fighting to win new work, creating new jobs and finding answers to the productivity puzzle.”
Interestingly, the survey also revealed renewed optimism amongst firms, with 61% recording an increase in turnover, 4% up on the previous quarter and 13% up on the same period last year.
There was also a 7% rise in the number of manufacturers that have recruited (44%), whilst investment in machinery and new technology has remained the same.
When it came to citing hurdles holding back productivity, 54% of SMEs cited skills and expertise, whilst exactly half said workforce efficiencies. Available machinery and supply chain efficiency were also viewed as other difficult areas preventing increased performance.
The Manufacturing Barometer is conducted by SWMAS Group (part of the Exelin Group) in partnership with Economic Growth Solutions (EGS).