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Manufacturing Barometer Results: East Midlands Q4 · Manufacturing Barometer Q4 2016 20 Respondents...
Transcript of Manufacturing Barometer Results: East Midlands Q4 · Manufacturing Barometer Q4 2016 20 Respondents...
Manufacturing Barometer Results:
East Midlands Q4 – January, February, March 2017
Surveyed in April/May 2017
.
© 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
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
Chair of the Board
Finance Director
Managing Director
Operations Director
Other
Past Sales
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
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
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
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
Manufacturing Barometer Q4 2016
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
Manufacturing Barometer Q4 2016
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?
Manufacturing Barometer Q4 2016
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?
Manufacturing Barometer Q4 2016
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?
Manufacturing Barometer Q4 2016
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?
Manufacturing Barometer Q4 2016
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?
Manufacturing Barometer Q4 2016
Respondent numbers vary
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?
Manufacturing Barometer Q4 2016
Respondent numbers vary
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
Manufacturing Barometer Q4 2016
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:
0845 608 3838