Manufacturing SMEs ‘ready to invest’

The latest figures also show that 67% are predicting future increases in sales turnover – the highest recorded since the survey began. In further positive news for the sector, 53% of SME manufacturers reported an increase in sales in the first half of this year, with an all time National Barometer high of 67% predicting further growth over the next six months. David Caddle (pictured), area director for MAS, said the Barometer provided the 'clearest indication yet' that companies are prepared to invest in new machinery and their premises in a bid to remain competitive. He continued: "It is a reassuring finding and appears to meet the EEF's recent call for the sector to fund more research, innovation and export growth. "This sense of optimism is also present when it comes to employing new staff. 43% of SMEs (up 3% on the last report) are planning to hire new people with a further 50% expecting to keep workforce levels the same." Business and Energy Minister Michael Fallon added: "It is particularly encouraging to see that confidence is returning and manufacturers are becoming more optimistic about their future growth. "The findings are the latest indication that the economy is starting to head in the right direction, as we move from rescue to recovery."