A record number of manufacturers in the West Midlands are planning to invest in technology as sales continue to rise.
Small and medium sized manufacturers in the region are defying predictions of a slowdown in the sector by posting increases in current and predicted sales, according to the latest Manufacturing Barometer.
It also reveals 56 per cent said they were planning to increase investment in new technology – the highest figure recorded in the three-year history of the research.
In all, 62 per cent of respondents said turnover increased in the past six months, while 73 per cent were expecting further increases over the next four months.
Lorraine Holmes, area director of the Business Growth Service’s Manufacturing Advisory Service, said: “There have been concerns that manufacturing is slowing down, and GDP figures from the Office for National Statistics did indeed reveal a slight decline.
“I’m pleased to say that SME manufacturers are feeling more optimistic. Turnover for the last period has bounced back and the outlook for future sales appears very positive, with automotive and construction strong and new opportunities in offshore wind and nuclear opening up previously untapped markets.
“Record investment plans in technology should be welcomed. This shows companies are recognising that they need to spend in order to compete globally, offering unique processes and technologies that establish themselves on the added value chain.”
The new data shows an upturn in fortunes for manufacturers is set to boost the job market with 59 per cent of firms still looking to recruit.
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The Barometer is the largest survey of its kind, reflecting the views of 79 SME manufacturers across the West Midlands, employing more than 3,500 people.
More than half of companies (54 per cent) cited regulation as their biggest burden, followed by the availability of new recruits with the right skills (42 per cent) and the ability to secure appropriate finance or investment (40 per cent).
Only 35 per cent said that the cashflow profile of the business hindered their future development.
Ms Holmes added: “Our long-term economic plan is delivering and it’s clear that manufacturers are leading the way.”
“We also asked them to tell us which factors they felt supported growth. Nearly three quarters felt their current business plan is important to growth, whilst the skills and expertise of the management team and a strong sales strategy both scored highly.”