Results from the Carpenter Box SME Manufacturing survey
By Chris Coopey, Partner, Carpenter Box LP
93% of SME manufacturers in the south have a growth strategy, but skills shortage highlighted as ‘a national scandal’
The results from the latest SML Manufacturing Survey from West Sussex-based chartered accountants Carpenter Box LLP, in conjunction with MHA, the UK-wide group of accountancy and business advisory firms, paints a picture of growing optimism among manufacturers on the South Coast and in the Gatwick Diamond.
This optimism is supported by continuing investment in R&D and capital expenditure and an increase in recruitment, including a 13% rise in the number of businesses due to take on apprentices. That said, a shortage of recruits at every level, is harming future prospects and has been described by Chris Coopey, Head of the Manufacturing Sector at Carpenter Box and Head of the Manufacturing Group at MHA, as “a national scandal.”
Interestingly, despite nine in every 10 small and medium sized manufacturers in the south predicting growth in 2014, more than half of these businesses still feel unable to pass on any increased costs to customers. The Survey also highlights that 36% of the same businesses are unsure how they will meet the upcoming cost of pension auto-enrolment. Unsurprisingly, given the level of administration involved in auto-enrolment, almost six in 10 also say that ‘red-tape’ is getting worse, despite government pledges to reduce regulation. Energy costs also remain a major issue.
