Manufacturing Barometer Results: East Midlands Q4 · Manufacturing Barometer Q4 2016 20 Respondents 10.0% 25.0% 55.0% 5.0% 5.0% 12.5% 29.2% 54.2% 4.2% 0.0% Much Increased Increased

Manufacturing Barometer Results:

East Midlands Q4 – January, February, March 2017

Surveyed in April/May 2017

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© SWMAS Ltd 2017. No part of this report may be reproduced without the express permission of SWMAS.

Manufacturing Barometer Q4 2016

• Introduction

• Business Aspirations

• Survey Demographics

• Measuring Trends

• Special Focus

• About the Manufacturing Barometer

Contents

Maximising your workforce

efficiency to support

Productivity and Growth

Welcome to the latest Manufacturing Barometer collecting the results, views and opinions

of manufacturing SME’s.

Senior decision makers within small and medium sized manufacturers have shared their views on

maximising workforce efficiency to support productivity and growth.

The Core Trends

SME manufacturers across the East Midlands have witnessed a boost in their sales turnover in the

past six months increasing from 52% to 55%. Respondents remained optimistic for the next six

months too, with 70% expecting their sales turnover to increase.

Investment over the past 6 months in new machinery has also increased from 32% last quarter to

45% this quarter and a staggering 28% decrease in technology spend over the past 6 months.

Finally, there has been a 8% increase in staff numbers for businesses over the past 6 months,

perhaps reflective of the spike in sales turnover for 55% of businesses. When asked how they

expect staff numbers to change over the next six months, 40% of businesses said they inspected

an increase, down 12% from last quarter.

The Special Focus

In this quarter’s survey we sought to understand SME manufacturers thoughts on maximising their

workforce efficiency to support productivity and growth.

Continued Overleaf...

Introduction

Lorraine HolmesCEOEconomic Growth Solutions

Introduction

The findings highlighted that the main barrier to productivity and growth for manufacturers seems

to be skills and expertise within the business, closely followed by their workforce efficiency.

Other barriers included cost increases from supply chains, the lack of availability in suitable

industrial property and reaching new markets.

Senior decision makers have revealed they believe skills and expertise of non-management

team, the pressure to pay higher salaries and motivation or attitude of non-management

employees are all important elements when it comes to improving the productivity and growth of

the business when looking at their existing workforce.

With a strong and efficient workforce clearly vital to a growing business, we asked respondents

what their main challenges were when looking to attract new talent. Lack of industry specific

skills was the evident frontrunner, closely followed by the pressure to pay higher salaries and the

quality of graduates/apprentices in the region.

Conclusions

The overall picture is a very positive one, with sales turnover increasing for many businesses

within the sector. However, with increases in sales, the need for an efficient and productive

workforce is amplified. Whether improvements are made through enhancing skills of the current

workforce, or adding to the existing team by attracting new talent into the business, it is key that

businesses get it right if they want to prosper, but with lack of industry specific skills and good

quality graduates and apprentices coming into the industry, are Government doing enough to

support SMEs in overcoming these obstacles?

Simon HowesManaging DirectorSWMAS Group

Business Aspirations

“To continue to expand manufacturing in UK. Diversifying our product range

and into new sectors of the market place including online.”

Arena Scarves

“Survive. Continue to replace the oil and gas sector customers. Grow a

number of niches..”

“We are an innovative company who are aiming to grow year on year with new products

and improvements to existing products. Our business plan is designed to grow by 40%

by the end of 2020..”

Shelton Sportsturf Drainage Ltd

“For our enterprises to grow and develop and in turn, create an increase

in the profits made that are shared out between the members of the

company.”

Countryside Enterprises CIC

“We plan to grow our key client product ranges with innovative sampling

and sales. We are also launching our own skincare brand for retail this

year. We aim to increase our turnover for 2017-2018 by 20%.”

Penny Price Aromatherapy Ltd

31 Respondents

Survey Demographics


Regional breakdown

Derbyshire

Leicester andLeicestershire

Lincolnshire

Northamptonshire

Nottinghamshire

Over 52% of the respondents were managing directors.

Individuals who are in the business, hands-on, running it day-to-day.

31 Respondents

Survey Demographics


Chair of the Board

Finance Director

Managing Director

Operations Director

Other

Past Sales


20 Respondents

5.0%

50.0%

30.0%

15.0%

0.0%

12.0%

40.0%

20.0%

24.0%

4.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How has your sales turnover changed within the past 6 months?

Q3 2016-17 Q4 2016-17

Future Sales


20 Respondents

10.0%

60.0%

20.0%

10.0%

0.0%

4.0%

68.0%

24.0%

4.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How do you expect your sales turnover to change over the next 6 months?

Q3 2016-17 Q4 2016-17

Past Employment


20 Respondents

0.0%

40.0%

40.0%

15.0%

5.0%

4.0%

28.0%

52.0%

16.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How have staff numbers in your company changed in the past 6 months?

Q3 2016-17 Q4 2016-17

Future Employment


20 Respondents

0.0%

40.0%

55.0%

5.0%

0.0%

8.0%

44.0%

48.0%

0.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How do you expect staff numbers in your company to change in the next 6 months?

Q3 2016-17 Q4 2016-17

Past Capital Investment


20 Respondents

10.0%

35.0%

45.0%

10.0%

0.0%

16.0%

16.0%

52.0%

16.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How has your investment in new machinery/premises changed in the past 6 months?

Q3 2016-17 Q4 2016-17

Future Capital Investment


20 Respondents

10.0%

25.0%

55.0%

5.0%

5.0%

12.5%

29.2%

54.2%

4.2%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How do you expect your investment in new machinery/premises to change in the next 6 months?

Q3 2016-17 Q4 2016-17

Past New Technology


20 Respondents

5.0%

15.0%

75.0%

5.0%

0.0%

12.0%

36.0%

40.0%

12.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How has your investment in new technology changed in the past 6 months?

Q3 2016-17 Q4 2016-17

Future New Technology


20 Respondents

0.0%

35.0%

65.0%

0.0%

0.0%

8.0%

40.0%

52.0%

0.0%

0.0%

Much Increased

Increased

No Change

Reduced

Much Reduced

How do you expect your investment in new technology to change in the next 6 months?

Q3 2016-17 Q4 2016-17

Special Focus – How do you feel productivity in

your business has been in the last 6 months?


20 Responses

in partnership with

Much Increased Increased No Change Reduced Much Reduced

5.0%

40.0% 40.0%

5.0%

10.0%

Special Focus – How do you think productivity in your

business will change in the next 6 months?


20 Respondents

in partnership with

Much Increased Increased No Change Reduced Much Reduced

10.0%

50.0%

40.0%

0.0% 0.0%

Special Focus – What are the key challenges your business

faces when it comes to productivity and growth?


Respondent numbers vary

in partnership with

0 2 4 6 8 10 12

Workforce efficiency

Skills and expertise

Machinery

Supply Chain efficiency

Technological updates

Financial support

Leadership

Special Focus – What other key challenges does your business

face when it comes to productivity and growth?


Change in procurement requirements by the Water

Plc Sector.

Real funding by way of grants.

UK and world growth.Underfunded education system- National Crisis.

Special Focus – When looking at your existing workforce,

which of the following areas do you feel are affecting your

business' productivity and overall growth today?



in partnership with

0.0% 20.0% 40.0% 60.0% 80.0%

Skills and expertise of the managementteam

Skills and expertise of non-managementteam

Motivation and/or attitude of non-management employees

Pressure to pay higher salaries

Culture surrounding innovation within thebusiness

Strong leadership on shopfloorHinders

Neither Hinders nor Supports

Supports

Special Focus – What challenges are you faced with when looking to

employ new talent into the business?



in partnership with

0.0% 20.0% 40.0% 60.0% 80.0%

Competing with other sectors

Competing with other businesses within themanufacturing sector

Quality of graduates/apprentices

Lack of industry specific skills

Pressure to pay higher salaries

Geographic shortfall

Not understanding outsourcing/contractingoptions

Training resource

Don’t Know

Disagree

Neutral

Agree

About the Manufacturing Barometer


The Manufacturing Barometer is a quarterly survey that charts the experiences of UK SME

manufacturers. It is the largest survey of its kind and has informed both government industrial

strategy and the national debate on manufacturing.

Run by SWMAS since 2009 in the South West of England, the Manufacturing Barometer records

trends in employment, turnover and investment. Each quarter, a ‘special focus’ explores an issue in

greater depth. In the past this has included issues such as productivity, overseas production and

energy efficiency.

Companies are able to use this quarterly Manufacturing Barometer to compare themselves against

other firms within their sector or region.

For more information please contact:

[email protected]

0845 608 3838

mailto:[email protected]

Documents

Manufacturing Barometer Results: East Midlands Q4 · Manufacturing Barometer Q4 2016 20 Respondents 10.0% 25.0% 55.0% 5.0% 5.0% 12.5% 29.2% 54.2% 4.2% 0.0% Much Increased Increased