SME Manufacturers Continue to ‘Bounce Back’ from Covid-19
Despite continuing to experience supply chain and recruitment problems, SME manufacturers are continuing to bounce back from the pandemic as indicated in the latest Manufacturing Barometer which reports that 64% of companies surveyed expect their businesses to grow over the next 6 months whilst 52% plan to invest in capital equipment. For the complete picture please read the news bulletin below which was issued by Insider Media Ltd. today.
Roger Mundy, Managing Director, Beardsley Theobalds, 5th November 2021
Covid-19 Bounce Back Continues for SME Manufacturers
SME manufacturers are continuing to bounce back from the Covid-19 pandemic despite experiencing supply chain and recruitment issues, according to a new report.
The latest Manufacturing Barometer, which surveyed more than 400 SMEs across the UK, shows the 64 per cent of companies are expecting to grow over the next six months and 52 per cent plan to invest in capital equipment and manufacturing.
For the first time in more than a year, the report also revealed that more firms are trading at increased levels than they were before Covid-19.
This is despite 60 per cent of respondents stating that staff are having to spend additional time liaising with suppliers more than half being forced to increase product prices to recover some of their additional costs.
Additionally, in excess of 60 per cent of SME manufacturers have lost skilled staff since the beginning of the Covid-19.
The barometer is organised by South West Manufacturing Advisory Services (SWMAS) and the Manufacturing Growth Programme (MGP).
Managing director Nick Golding said: "Throughout the past 18 months, manufacturing has exceeded expectations in its ability to innovate and adapt to current conditions, but external factors are still presenting problems.
"Lead times are being extended, logistics costs are going through the roof, and energy/material prices are extremely volatile. This all results in complex challenges for manufacturers across the UK.
"The improved confidence in future sales is not translating into increasing confidence for future profits. The ongoing supply chain challenges mean many businesses have had to reallocate and add additional resources to address these issues."