Region’s SMEs are bucking the trend with growing sales

SMALL and medium-sized manufacturers in Yorkshire are reporting increased sales and predicting future growth in spite of a rash of volatile economic data pointing to an industry downturn.
By The Newsroom
Published 14th Aug 2012, 08:50 BST

The manufacturing sector shrank at its fastest rate in more than three years in July, according to a survey of purchasing managers published last week, dealing a blow to hopes that the UK was about to come out of recession.

But a survey of 160 SMEs in Yorkshire revealed that 58 per cent of companies have seen orders grow in the last six months with 55 per cent expecting a further upturn between now and the end of the year.

Hide Ad
Hide Ad

Nearly a third of companies surveyed plan to create new jobs, 38 per cent expect their workforce to remain stable and 68 per cent are looking to boost turnover in the next 18 months, said the Manufacturing Advisory Service.

In line with recent surveys, there does appear to be a softening in the market place with only 44 per cent of respondents seeing an increase in enquiries, compared with 60 per cent in the previous survey.

The number of companies considering investment in new machinery and premises over the next six months is also down to 41 per cent from 49 per cent.

Martin Coats, MAS area director, said: “The results are still showing positive signs of growth and expansion, although there are indications among SME manufacturers in Yorkshire and Humber of a more cautious outlook going forward.

Hide Ad
Hide Ad

“This is not unexpected when you consider the recent economic forecasts and, historically, it takes a little longer for the slowdown to cascade its way down the supply chain and to the smaller companies.”

He added: “We have to make sure we don’t talk ourselves into another downturn. The [survey] is carried out quarterly, giving us a smoother picture of sentiment as opposed to some monthly findings that can be swayed by external influences, such as the Jubilee.

“And the majority are saying to us they are growing and expect this to continue over the next six months.”

Business Minister Mark Prisk said: “This latest MAS survey shows that many small manufacturing firms across the UK are growing and expect to continue to grow despite the challenging wider economic environment.” 

Related topics:YorkshireSMEs