London and South-East Manufacturers Say They Need to Improve Productivity
06/07/2015 Manufacturing Advisory Service North West (MAS)
83% of London and South East small and medium sized manufacturers have indicated that they need to improve productivity in the next six months if they are to achieve their growth plans. This highlights the need for more firms to take action to boost efficiencies, reduce waste and maximise the potential of their workforce and machinery.The manufacturers are the respondents to the latest Manufacturing Barometer - produced for the Business Growth Service. It is the largest survey of its kind, reflecting the views of 503 SME manufacturers across England, employing approximately 14,000 people. There were 118 respondents within London and the South East.
East London-based FormFormForm which makes Sugru, a mouldable glue says that, whilst worldwide sales and distribution are up, their manufacturing challenge is not only to increase productivity to keep up with demand but also to drive competitiveness. Páraic Begley, General Manager and COO says:
"Our Hackney-based manufacturing team has to work hard on continuous improvement as a way of life and to balance our capacity growth against constant cost pressure."
The region's firms are above the national average when it comes to future sales (72% v 70%), and 53% of London and South East companies are planning to take on more staff.
Buckinghamshire-based Micha Design, manufacturers of off-grid solar microprocessor controls and bespoke design solutions, have increased their turnover by 54% in the last three years. Gerry Condon, General Manager says "We have created five new jobs and our future plans for expansion are to other related technologies such as wind power, hydro power. We are supported by the Business Growth Service."
Nearly half (49%) of London and South East manufacturers report that they expect to maintain or increase their investment in new technology, whilst just over half (51%) expect to increase investment in machinery and premises.
Hampshire-based precision engineering machinists, GW Martin has recently invested over £1 million in new plant and machinery. Stuart Yalden, MD says "As a result of our investment in cutting edge technology and the support of the Business Growth Service, we expect 10% growth year on year. Over the next five years we are looking to diversify into new areas such as off-shore wind and the wider energy sector, and with that aim, to create 16 new jobs."
Steven Barr (pictured), Head of Manufacturing at the Business Growth Service commented: "Uncertainty has been the biggest feature of the last four months and this is reflected in the mixed bag of economic data that has been published recently. The Barometer is still fairly positive with slight dips in achieved sales and investment in new technology offset by positive job prospects and future expansion plans."
He went on: "Firms have once again raised the issue of productivity and, through our manufacturing experts at the Business Growth Service, we will engage with even more companies to help them with strategy, process improvement and the introduction of lean manufacturing."
Introducing the Business Growth Service
The Business Growth Service brings together successful Government-backed support, including GrowthAccelerator and the Manufacturing Advisory Service, into one wider offer, making it simpler for businesses to access the support they need to grow.
The service provides expert, tailored support for growing businesses; this includes advice for growth, export and finance.
For more information, please visit: www.greatbusiness.gov.uk/mas
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