www.mha-uk.com

2012 MHA Manufacturing and Engineering Survey Report

www.mha-uk.com

• Anationalsnapshotfromthe8memberfirms

• 145responses

• MajorityofrespondentswereSMEs

TheMHAmanufacturingandengineeringsurveyindicatedvariousconsistenttrendsforthosesurveyed.

• Business confidence:Confidenceforgrowthinthesectorin2012isencouraginglyhigh.

• Exporting:Thesector,andparticularlytheSMEsector,isveryactiveinexporting.Whiletheeurozonedominatesasadestination,it’sveryencouragingthatthepotentiallymoredifficultandhigherriskAsianmarketsarenotbeingignoredwiththepercentageofcompaniesexportinghereslightlyexceedingthoseexportingtoNorthAmerica.

Somemanageablebarrierstoexportremain.Inthissurvey,itwasapparentthatthereremainsworktobedonetohelpcompaniestobetterunderstandsuchthingsassourcinglocalpartnersanddealingwithregulatoryissuesinforeignjurisdictions.

• Government Support and National Strategy:Thelackofanationalstrategyformanufacturingmaywellbeanissueiftheeconomyistoberebalanced.

• Funding:Thoughmostoftherespondentsindicatedthatobtainingfundingfromtheirbankwasaproblem,mostwerenotlookingtomovetheirbusiness.Theavailabilityofgrantswasalsoanissuewithmostrespondentseitherbelievingtheyhadnoaccesstogrants,orwerenotplanningtoapply.

MHAisafastgrowingUKwideassociationof8like-minded,progressiveandrespectedaccountancyandbusinessadvisoryfirms.

The37nationwideofficesallowMHAtobalancethenationalaccessandcapabilitytheassociationofferswiththelocalinsightandperspectivethatindividualmemberfirmsoffertheirclients.

MHAisabletoassistwiththeirclients’needswherevertheyareintheUKaswellasgloballythroughourmembershiptoMorisonInternational.

Theassociationworkscollaborativelytodevelopandpromotememberbusinesses.

MHAallowsclientstobenefitfromindepthsectorknowledgeinadditiontospecialistaccountancyservicesandexpertbusinessadvice.

AsleadingadviserstotheSMEmarket,manufacturingandengineeringarekeysectorsforMHA.

IntroductionMHA surveyed 145 clients and contacts in the manufacturing and engineering sectors in January 2012. Our respondents ranged from companies turning over less than £1m to global giants with a significant industry presence. The survey was split into five sections, Business confidence, Exports, R&D, Government support and Finance.

MHA member firms:Bloomer Heaven

Broomfield & Alexander

Carpenter Box

Henderson Loggie

Larking Gowen

MHA Macintyre Hudson

Moore and Smalley

Tait Walker

Key survey findings

About MHA

WE SURVEYED 145 CLIENTS IN THE MANUFACTURING SECTOR

ThisisveryencouragingandreflectstheprioritiesofUKTrade&Investment’sstrategy.SMEsarecrucialtore-balancingtheeconomy.In2011SMEsaccountedformorethanhalfofemploymentandalmosthalfofturnoverintheUKprivatesector.ButweneedevenmoreSMEstoexport.Exporterscontribute60percentoftheUK’sproductivitygrowth.

UKTrade&Investmentistheretosupportthisobjective.Weintendtodoublethenumberof

companieswehelpfrom25,000to50,000companiesoverthenextthreeyears.Wehaveabigfocusonhighgrowthemergingmarkets,suchasChinaandIndia,whereagrowingmiddleclassisbringingaboutincreaseddemandformoreexpensiveandbetterqualitymanufacturedgoods.

TheBritishbrandisverypowerfulinthesemarkets.ExpandingoverseascanbeadauntingprospectbutUKTrade&Investment’srangeof

servicesandglobalexpertsarereadytoofferadviceandsupporttocompanies.

NickBaird,CEOofUKTrade&Investment

www.mha-uk.com

ForewordsThe 2012 MHA Manufacturing and Engineering Survey has highlighted a number of pertinent issues which we cannot afford to ignore.

I am delighted by the results of MHA’s manufacturing survey. Not only are more SMEs exporting but they are exporting to high growth and emerging markets in Asia.

Companiesoperatinginthesesectorsareundereverincreasingpressuretocutcosts,meettherisingpricesofrawmaterialsandtakeontheadditionalrisksassociatedwithnewmarketsiftheyaretosurvive.

Despitethesepressures,itisencouragingthatsomanyofthesurveyrespondentspredictgrowthforthesectoroverthecomingyear.

Amongthemainfindingsofthesurvey,theactivityaroundexportingisparticularlyinteresting.TheresultsindicatethatSMEsoperatingintheManufacturingandEngineeringsectorsareundertakinghighlevelsofexportingactivitywiththechoiceofdestinationsencouraginglyvariedandopentothetraditionallyhigherriskmarketssuchas

Asia.Thisisindicativeofasectorwhichisnotaversetotakingnecessaryriskstoensuremarketgrowth.

Whiletheoutlookfrommanyofourrespondentsseemspositive,moremuststillbedonetoensurethatanyavailablesupportiscommunicatedtothesector.Governmentalsupport,coupledwithsoundfinancialplanningandadviceonoperatinginunfamiliarterritorieswillensurethatthesectorreceivesthesupportitneedstogrow.

Wehopeyoufindthesurveyofvalue.Ifyouhaveanyqueriespleasedonothesitatetocontactanyofourmemberfirmswhowillbedelightedtoassistyou.

MikeBrown,MHAChairman

MIKE BROWN, MHA CHAIRMAN

UKTI

MHA

www.mha-uk.com

1.1 Business confidence

Thisisencouraging,whileperhapssurprisinggiventheUK’slatestGDPforecastand,despitetheBankofEngland’sview,thepossibleimpactofadoublediprecession.

Atthetimeofthesurvey,almost50%oftherespondentsappearedtofeelthatthecontinuingeurozonecrisisoverthenext12monthswouldhaveanegativeimpact.Theresolutionoftheeurozonecrisisforgoodorill,willundoubtedlyaffectbusinessconfidenceoverthecomingyear.

Part one: Business confidence

The national outlook was positive with 78% predicting growth to some degree and 33% predicting more than 10% growth.

Business confidence

Moderatetohighgrowth(10%plusgrowth)

Lowtomoderategrowth(under10%growth)

Flat(0%growth)

Negativegrowth

45%

33%

18%

4%

ENCOURAGING TIMES EVEN WITH TALK OF A DOUBLE DIP RECESSION

www.mha-uk.com

1.2 Capital expenditureEncouragingly only 8% of the companies who responded would look to decrease their capital expenditure in the coming year while almost half of all respondents planned to increase capital expenditure over 2012.

Suchexpenditureoftendependsuponthebanks,whichisacontinuingissueformanyoftherespondentswith42%statingthattheydidnotreceiveadequatesupportfromtheirbanks.UnderthetermsofProjectMerlin,thegovernmentsetthebanksatargetforSMElendingwhich,itisfelt,bankshavefailedtomeet.Assuch,whilebusinessesmaywanttoinvestincapitalexpenditure,havingaccesstofundingwillcontinuetobeanissue.

Whatisalsointerestingisthemarkedsupportforthegovernment’sprincipleofreducingthevalueofcapitalallowancesinfavourofcuttingoverallcorporationtax.Ofthosewhoanswered,66%wereinfavourofthescheme.

Case study – Broomfield and AlexanderMD of a Print Group (Producers of lithographic, digital and large format print across the UK) said:

“Themajorissueiscustomerconfidencethroughouttheeconomy.Everyplanandprojectinabusinessispointlessiftheeconomygoesintorecessionagain.Wecannotaffordtodropourturnoverinthenext12months.Anothermajorissueisourbank.Inrecentyearsbanksfailtounderstandthatbusinesseswithgood,provenmanagementteamsneedtobesupportedthroughdifficulttimeswithwhateverresourcesthebankhaveattheirdisposal”.InanswertothesechallengestheGrouphasseveralsolutions:

Wehavecompletelychangedthestructureofoursalesteaminthelast12months.Wehaverecruited4newinternalsalesemployeestostrengthentheteam.Allexternalsalesstaffnowhaveone-to-onesupportforadministrationofquotes,ordersandgeneralqueries.Thisleavestheexternalstafffreetopursuenewwork.Withregardstothebankwewilloutlineourbusinessplantotheminthenextfewweeks.Inthisprocessweintendtohighlightthegoodandbadscenarios.Iftheeconomytakesadipweneedtohaveaclearunderstandingofwhatthebankcandotoprovideextrafacilities.Wewouldalsoneedabackupplaninplaceifthebankfailstodeliveritspromises.Frompastexperienceitisfarbettertohaveaplanreadyandwaitingtoraiseextracashatanearlystage.Risesinrawmaterialpriceshavehadamajorimpactonourcompanyinthelast2years.Paperhasrisenby25%overthisperiodaddingafurther£400ktoourcosts.Itiskeyinthenext12monthstocontinueourprocessimprovementplanandreduceourpaperwastagefurther.”

Respondent views:

“The continual downplay of economic and forward forecasts does not reflect our experience. We cannot understand what we are doing so right.”

“UK Manufacturing as we can see it is going through a pivotal stage, UK manufacturers are indeed winning significant new orders and customers in the UK are, or seem to be, going through a period of localisation back into the UK.”

Capital expenditure plans for 2012

Increase

Neutral

Decrease

46%

46%

8%

www.mha-uk.com

Respondent views:

“Manufacturing and export are key to growth, the challenge lies around recruiting good engineers and marketers with international exposure.”

“Significantly increase awareness of export opportunities in high growth markets.”

Acrosstheresponses,unsurprisinglyweidentifiedthatsmallercompanieswerelesslikelytoexportwithover60%ofthosewhodonotcurrentlyexporthaving50employeesorless.

Inthelastautumnstatement(November2011)GeorgeOsborneannouncedanadditional£35minfundingwillbeusedtohelpdoublethenumberofsmallandmediumsizedenterpriseshelpedbyUKTIeachyear.

Intermsofexportmarkets,thesurveyrevealedthatactivitywasparticularlycentredontheeurozonewiththemajorityofexportingrespondentslistingEuropeasadestination.Perhaps,moresurprisingly,ofthoseexportmarketslisted,marginallymorerespondentsexportedtoAsiathanNorthAmerica.

AsUKTIhighlightedrecently,exportingcanproveattractiveevenforthesmallestcompany.Lookingatthechallengestoexporting,respondents,includingthosealreadyactivelyexporting,indicatedanumberofissueswheretheyfeltmoresupportandinformationwouldbeuseful.Ofthese,sourcingandunderstandinglocalpartnersandregulatoryissuesweretheareaswheremuchgreaterunderstandingwasdesired.

Part two: Exporting72% of our sample already exports – an encouraging percentage given the breadth of the sample and the competition from low-cost overseas producers.

EXPORTING CAN PROVE ATTRACTIVE FOR EVERY COMPANY

Export locations

0 20 40

54%

30%

44%

51%

33%

88%

10%11%14%

16%

30%

41%

Percentageofrespondentsexportingtoparticularmarkets

Pleasenote:multipleresponsesareincluded

Num

bero

frespo

nden

ts

Sourcing&understandinglocalpartners

Regulatoryissues

Internationaltax Transfer

pricing

Supplychainsecurity Political

risk

Africa

Asia

TheEurozone

NorthAmerica

Other

Europe(excludingEurozone)

60 80 100

What areas of exporting would you like to better understand?

www.mha-uk.com

Case study – Moore and SmalleyThe MD of a spring manufacturer informed us of his concerns for 2012:

1. EconomicthreatfromaEurozoneCrisis.

2. EconomicthreatfromthebubbleburstinginChina.

3. Economicthreatfromafurthercontinuationofthebankingcrisis.

4. PotentialIncreaseinSterlingvsEuroandDollar.

5. TheNeedforRelaxationofEmploymentLegislationsvsEurope.Thisalmostsoundscounterintuitive,howeverBritain’smorerelaxed“businessfriendly”approachtoemploymentlegislationhascausedanimbalancewithEurope.TypicallywhenaglobalOEorTier1supplierisboughtoutandithasfacilities,forexample,inGermany,FranceandtheUK,itisalmostalwaystheUKfacilitiesthatareclosedintheconsolidationprocess,astheemploymentcostofclosureissignificantly

cheaper.Undertheprevioustwoadministrationsthiswasnotseenasanissueastheincome(manybillionsperannum)tothecountryfromthesell-offofthe“outdatedandnolongerrequired”manufacturingindustryhelpedthebalanceofpaymentsdeficit.Ironically,nowwehaverealisedthatthecountrycannotsurviveonserviceandbankingsectorsalone,manufacturingattheTier1levelhasalmostdisappearedfromtheUK,andconsequentlymostofthemanufacturingSME’scustomers.

InanswertothesechallengestheMDstated:“Theeconomicconsiderationsarevirtuallyunavoidableiftheyhappen.Wewilltrytominimisetheeffectonthebusinessbytryingtomaintainhighcashlevels,lowdebtlevelsandlowstocklevelstocopewithanyshockstothesysteminthebestwayswecan.Alsowithhighcashlevels,opportunitiesshouldbepresentedintheeventofafurthercrisis.Wewillalsocontinuetomaintainrigorousandaggressivecreditoranddebtoranalysistominimisetheriskofbaddebt.

OurplantoovercomethecontinuedlossofthemanufacturingOEMandTier1sfromtheUKhasbeentofollowthebusinesstoitsnewmarketsabroadbyofferingaveryhighqualityproductandahighlevelofservice.Wearenowusingthesecustomersashubsinforeigncountriestofindnewcustomersinothersimilarbusinessareastocontinueourspecialistgrowth.”

Respondent views:

“In terms of R&D there is a danger that if the product is mid lifecycle now then without further investment, competitors will overtake you”.

With over 25% of respondents having no research and development (R&D) spend and over 35% having a spend of between 1 and 2%, investment in R&D appears to be low. However,thisisconsistentwithothernationalsurveys.WhiletheeffectsoftherecessionhaveundoubtedlyputpressureonsuchthingsasR&Dspend,thereremainsignificantbenefitsintermsoflongtermcompetitivenessand,intheshorterterm,taxcreditswhichcompaniesmightwishtoputmorefocuson.

Interestingly,forthosespendingunder3%onR&D,ifanimmediatecreditfromGovernmentfortheexpenditure(asopposedtothecurrentsystemofhavingtooffsetR&Dspendagainstcorporationtaxatalaterdate)wasimplemented,thiswouldonlyencourage44%tospendmoreonR&D.Forthosecurrentlyspendingmorethan3%onR&Dtheschemewouldencourage73%ofrespondentstoincreasethisspend.

Part three: Research and development

R&D spend

Percentage of turnover spent on R&D

Above10%

9-10%

7-8%

5-6%

3-4%

1-2%

0%

6%

5%

37%

13%

26%

13%

www.mha-uk.com

What the manufacturers say:1. “Wewouldlovetohavetangiblesupport

fromthegovernmentformanufacturingintheUK.”

2. “Lackofinitiativefromthegovernment”.

3. “Thegovernmentoftheday,overthepasttwodecades,hasneglectedmanufacturingtoadegreethatmanufacturingisnottheforceintheUKorworldeconomyitusedtobe.Areturntosupportinglowcostengineering,andhencetherequirementforyoungskilledmanualworkers,mustbeaconsiderationforthefuture.Germany,withhigherwagecoststhantheUK,stillmanagestohaveahighproportionofitsGDPbasedonmanufacturingoutput.AgovernmentpolicyofrebalancingtheeconomybyboostingUKmanufacturingoutputmustbefundamentalforthefutureofUKPLC.”

4. “WithoutthegovernmentalsupportthatcountrieslikeGermany,NorwayandJapangivetheirmanufacturingsectorsanyinitiativeswillonlybea‘stickingplaster’solution.Intruetermsthegovernmentisonlyreallyinterestedindrivinggrowthforthefinancialservicessector.”

5. “IthinkthegovernmentshouldbedoingalotmoretopromoteUKmanufacturingaboveotherindustries,andinvestmentintothisindustry.”

6. “Inouropinionthegovernmentthinkingonmanufacturingismisguidedandvague.Ifmanufacturingistobethesalvationweneedabetterandmorecoherentplanwithpositiveassistanceandlongtermplanning.”

7. “ManufacturingisessentialtotheUKifwearetofundthetradedeficit.Itsimplycannotbedonewithoutsellingproducts–financialserviceswillnotwork.”

8. “TheCoalitionGovernmentdoesnotreallyunderstandthefundamentalimportanceofmanufacturingtotheUKeconomy,northeuniquepositionoftheNorthEast(theonlynetexportingregionintheUK).”

Respondent views:

“The support of the Manufacturing Advisory Service has been very useful in helping us implement lean manufacturing processes and assist us with staff training initiatives. However, the marketing of this body (and other similar schemes) appears to have bypassed many other SME firms that we speak to and I would personally like to see more manufacturing support of an intellectual nature given to firms”.

Over 90% of respondents did not believe that the government had a specific manufacturing strategy. Thesurveygaverespondentstheopportunitytocommentgenerallyandmanytookthetimetoventtheirfrustrationatwhattheyperceivedtobealackofgovernmentalsupportfortheirsectorstretchingbackdecades.

Ofthosewhobelievedthattherewasanationalstrategyinplaceforthemanufacturingindustry,thecommentsneverthelessindicatedalackofawarenessrelatingtotheassistanceavailable.

Part four: Government support4.1 Government support

DOES THE GOVERNMENT HAVE A NATIONAL MANUFACTURING STRATEGY?

National strategy

Thereisnonationalstrategyinplace

Thereisanationalstrategyinplace

94%

6%

www.mha-uk.com

Respondent views:

“The current grant system is based on jobs, it should be based on capital investment as high tech equipment is meant to reduce labour costs.”

With regard to grants, almost half of all the respondents believed they were not eligible for government grants.

Ofthe52%thatbelievethemselvestohaveaccesstogovernmentgrants,only20%wereplanningtotakeadvantageofthem.Whileitissupposition,itmaywellbethattheother32%believetherewardnottobeworththeeffort,indicatingareluctancetoundertaketherequiredadministrationinvolvedinthegrantsschemewithnoguaranteeofgettinganythingintheend.Onerespondentcommentedonthe“needtocutoutredtape”.

Anumberoftherespondentsalsofeltthattherewasinsufficientsupportforstartupcompanies.

A number of survey respondents highlighted the need to point out the benefits of apprentice schemes with one manufacturer suggesting:

“Bringbackthetraditional4yearapprenticeshipschemes,marketandadvertisemanufacturingasarewardingandworthwhilecareer.”Thisissupportedbyanotherwhohighlightedashortage

inskilledlabour:“ManufacturingintheUKisfacingashortageofskilledemployeesatalllevels.Growthwillonlybeachievediftherearesufficientgoodqualityengineeringapprentices,graduateengineersandmanagers”.

Ofthecompaniessurveyed,anddespitetheincentivesavailable,onlyjustoverhalfindicatedtheywouldtakeonapprenticesortraineesin2012.Anumberofrespondentssuggestedthismightbedueto“overprotectiveemploymentlegislation”.AccordingtoSemta(thesectorskills

councilforscience,engineeringandmanufacturingtechnologies)thereisanorthsouthdivideinthetakingonofnewapprentices;theirdatasuggeststhat25%ofsectoremployersinthenorthofferapprenticeshipscomparedtoanationalaverageof17%.

Ofthosewhodidnotplantotakeonapprenticesortraineesin2012,thegovernment’sschemeseemednottomakeanappreciabledifference.

4.2 Grants

4.3 Employment and training

Government grant access

Accessandplantoapply

Accessbutnoplantoapply

Noaccess

48%

32%

20%

www.mha-uk.com

While61%believethattheycanpassonpriceincreasestotheircustomers,asignificantnumberarestillunabletodosoandarelookingatotherwaysofabsorbingthecost.

Forthosewhoareunabletopassoncostincreasestotheircustomers,themostpopularmethodofabsorbingpriceincreaseswasbyimprovingproductivity.

Interestingly,despitetheapparentneedtoimproveproductivitytoabsorbpriceincreases,withinthemanufacturingprocessthisisnotsupportedbyactionwith60%ofrespondentsnotplanningtoimplement‘lean’manufacturingprocessessuchasKaizenorSixSigma.However,onerespondenthadotheradvice:“makeyourselfasleanandefficientaspossible.”

Part five: Financial considerationsPricing and cost increases remain a contentious issue. Methods of absorbing price increases

Percentag

eofre

spon

dents

Sub

contracting

/outsourcing

Rationa

lising

staff

Sou

rcingvia

newsup

pliers

Increasing

volume

Improving

prod

uctivity

Implem

enting

costsaving

Produ

ctdesign

chan

ges

Using

differen

t/low

ercost

materials

Establishing

prod

uctionina

lowercostloc

ation

BUSINESSES ARE TRYING MAKE THEMSELVES AS EFFICIENT AS POSSIBLE

Pleasenote:multipleresponsesareincluded

6%14%

26%

38%

54%54%62%

68%

86%

www.mha-uk.com

Respondent views:

“We expect to see our margins eroded due to aggressive pricing from our larger American and German competitors”.

Case study – Tait WalkerGroup CEO of an Aerospace company listed his main challenges as:

• Maintainingsalesgrowthinthefaceofpooreconomicconditionsandglobalcompetition.

• Maintainingmargininthefaceofcustomers’demandforreductionsandrisingcosts.

• Managingtheimpactoftheeconomiccrisisonthedollar.

• Seekingadditionalfundingforinvestment.

In response to these challenges he planned to:

• Extendsalesandmarketingactivities,newsectorsandgeographicregions.

• ContinuetotakeadvantageofthelowcostmanufacturingcentreswehavedevelopedinEasternEuropeandMexico.

• Looktosourcemoreproductoffshoreandindollars.

• Deploy‘lean’activitiesthroughoutthemanufacturingoperations.

• Someconsolidationofsites.

• Aggressivelytargetcostreduction.

• Investinproductdevelopment.

• Investincompetitivemachiningtechnology.

Can you pass on raw material price increases to customers?

Yes

No

61%39%

Do you currently have, or intend to introduce lean manufacturing processes?

Yes

No

60%40%

BLOOMER HEAVENHeadOffice:BirminghamContactNumber:01212360465www.bloomerheaven.co.uk

BROOMFIELD & ALEXANDERHeadOffice:CardiffContactNumber:02920549939www.broomfield.co.uk

CARPENTER BOXHeadOffice:WorthingContactNumber:01903234094www.carpenterbox.com

HENDERSON LOGGIEHeadOffice:DundeeContactNumber:01382201234www.hendersonloggie.co.uk

LARKING GOWENHeadOffice:NorwichContactNumber:01603624181www.larking-gowen.co.uk

MHA MACINTYRE HUDSONHeadOffice:LondonContactNumber:02074294100www.macintyrehudson.co.uk

MOORE AND SMALLEYHeadOffice:PrestonContactNumber:01772821021www.mooreandsmalley.co.uk

TAIT WALKERHeadOffice:NewcastleContactNumber:01912850321www.taitwalker.co.uk

MEMBER OFFICES OUR REACH

MHAisthetradingnameofMHCALimited,acompanylimitedbyguarantee,registeredinEnglandwithregisterednumber:07261811.Registeredoffice:MoorgateHouse,201SilburyBoulevard,MiltonKeynes,UnitedKingdom,MK91LZ.Professionalservicesareprovidedbyindividualmemberfirms.NomemberfirmhasliabilityfortheactsoromissionsofanyothermemberfirmarisingfromorinconnectionwithitsmembershipofMHA.Furtherinformationandlinkstothememberfirmscanbefoundviaourwebsitewww.mha-uk.com©MHA02/2012

SustainabilityWhiledrivingthemanufacturingsectorforwardsduringdifficulteconomiccircumstancesisanissue,thesurveyshowedthatsustainabilityremainshighontheagendaformostrespondentswith70%indicatingthatitremainedeitheramediumorahighpriority.

The survey asked respondents whether banks were providing adequate support.

42%,oftherespondents,statedthattheywerenotreceivingadequatesupportfromtheirbanks,citingaccesstofundsasthemostcommonproblem.Anumberofotherconcernsalsofeatured,includingservicelevels,changesintermsandbankcharges.

Despitetheseissues,therewasamongthosesurveyed,areluctancetochangebankswithonly20%ofrespondentsindicatingthattheyhadrecentlychangedorintendedtochangetheirbankinthenearfuture.Thismaybeindicativeoftheperceptionthatitis“betterthedevilyouknow”.

TheGovernmentcontinuestoputpressureonthesectortomeetlendingtargetsandloanguaranteeschemes.Whilerespondentsstillcallfor“moresupportforinvestmentinplantandmachinery”.

Banking

This first MHA manufacturing survey has uncovered some compelling data concerning the manufacturing and engineering sectors.

Wehopeyouhavefoundthissurveyinterestingandinformative.TheMHAmanufacturinggroupwasencouragedbytheoptimismwithinthesectorandbythelargenumberoffirmsalreadyexporting.

Alongwithmanyoftherespondents,weareconcernedthatthereappearstobenonationalstrategyformanufacturingandhopethegovernmentwilladdressthispointintheshorttermifthelongtermgoalofrebalancingtheeconomyistosucceed.

ThemembersofMHAwillcontinuetolookatwaysinwhichtoaddvaluetoourrelationships,informedbymanyoftheissueshighlightedabove.

Ifyouhaveanyquestionsaboutthedataorwishtouseoursurveyoranypartofitinanother

publication,pleasecontactHannahFishHannah.fish@mhllp.co.uk

ChrisCoopey,HeadofMHAmanufacturinggroupChris.coopey@carpenterbox.com

CHRIS COOPEY, HEAD OF MHA MANUFACTURING GROUP

Conclusion

Percentag

eofre

spon

dents

Accesstofunds

Lackofcommunicationaboutchanges

inservice

Changesintermsofloansecurities

Unexpectedincreasesincosts

Support from the banks

Pleasenote:multipleresponsesareincluded

www.mha-uk.com

Thank you 2012 MHA Manufacturing and Engineering Survey