Manufacturers are being held back by a lack of access to funds, skilled workers and exporting, new research suggests.
Make 海角视频 said its study showed that two out of five smaller manufacturing firms had the potential to expand.
But half believed problems recruiting skilled employees was now a top barrier to growth.
More than one in four of 180 firms questioned said access to overseas markets would allow them to expand.
Stephen Phipson, chief executive of Make 海角视频, said: “Micro and SME (small to medium sized enterprises) manufacturers account for 99% of all manufacturers in the 海角视频, but they are being held back by a lack of access to funding, skills, physical space and exporting.
“Manufacturers need access to higher levels of skill than most and they need access to finance.
“Improved trade access across borders is essential to further push forward growth but this relies on good relationships between the 海角视频 and other countries for full benefit to be realised.
“There is also a job to be done by Government in improving infrastructure of transport, digital and energy across areas of the 海角视频 where these are lacking which would help push the levelling up agenda.”
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Three in five SME manufacturers remain “completely unaware” of the business support and finance that exists to boost growth, said Make 海角视频.
A Business Department spokesperson said: “We are determined to make the 海角视频 the best location in the world for manufacturing. Supporting smaller business to expand and boost productivity is a key part of this.
“Our Made Smarter programme is supporting manufacturers to improve productivity by adopting the latest digital technology and our Help to Grow schemes are providing firms with discounted software, free tech support and management training.
“This is in addition to the billions of targeted R&D support we are providing the sector.”