2018/19 MHA Manufacturing and Engineering Survey Report
2018/19 Manufacturing & Engineering Annual Survey Report: UK SME manufacturing sector buoyant and confident about future growth
Drawing on national and regional insight from over 200 clients and contacts, the findings of our recent survey identifies opportunities and concerns facing UK manufacturing and engineering businesses. UK SME manufacturers and engineers remain optimistic and confident about future growth, despite the uncertainty surrounding Brexit, rising production costs and skill shortages.
Our Report is just one of the tools used to help businesses in the manufacturing and engineering sector. The story the Report tells, together with the comparative data held over the last seven years helps us to understand the trends and importantly, helps us to help our clients make the best of opportunities, as well as deal with some of the challenges.
Download a copy of the Report here
The Report highlights a number of important issues. These include:
- 71% of manufacturers reported revenue growth in the last year and 78% predict business growth over the next 12 months.
- 51% have high or above average business expectations over the next 12 months (increasing to 54% over the next three years) and 50% are looking to increase their capital investment spend in the coming year.
- 58% of respondents export products and all exporters currently do so to the Eurozone.
- 93% believe their main competitors are based within the UK and 35% agree they’re within their own region.
- Only 30% cite Brexit uncertainty and trading tariff concerns as their main barrier to future success and just 34% have a strategy in place for post Brexit - 66% feel they cannot plan for the impact until they know the Government’s strategy and EU response.
- 92% believe rising production costs will impact their business next year, but in a positive move, 67% intend to absorb any price increases, rather than pass them onto customers, and 52% intend to achieve this through improved productivity and efficiency.
- Staff recruitment is an equally big issue; 81% of respondents report problems in finding people, yet 49% expect to increase payroll numbers next year. Out of these, 63% will opt for apprentices.
The Report details the national findings, covering England, Wales and Scotland and also highlights interesting regional variations. Sector expert Matt Rooney, Engineering Policy Adviser at the Institution of Mechanical Engineers has provided commentary throughout the Report.
MHA MacIntyre Hudson and other MHA member firms have a wealth of experience in the manufacturing and engineering sector and together act for over 2,000 companies, ranging from owner managed SMEs to global businesses with international interests. Knowledge sharing across the association means that whatever your business type is, we have experience that can help you meet your strategic goals and grow your business. MHA is the independent UK member of Baker Tilly International; this enables all member firms to help clients achieve their global ambitions.
We hope you will find the insights as set out in the findings of the Report interesting and thought provoking. We would be delighted to meet with you for a further conversation around the ways in which we can help.
If you have any questions about the topics raised in this Report or would like to discuss your accounting and business advisory needs with one of our sector specialists, please contact Atul Kariya, Head of Manufacturing & Engineering, Partner directly, or send us an online enquiry.