West Midlands SMEs are stepping up investment


The latest Manufacturing Advisory Service barometer revealed that 88 per cent of businesses who responded are planning to invest in capital equipment over the next 12 months, with companies looking to spend £165,000 on average. 

With almost 10,000 firms making up the West Midlands small and medium-sized manufacturing community, this could equate to hundreds of millions of pounds of fresh industry investment between now and 2015. 

Lorraine Holmes, area director for MAS, said: “There is a definite feel good factor around West Midlands manufacturing at the moment and these latest figures reinforce positive reports from the Society of Motor Manufacturers and Traders together with encouraging Purchasing Managers’ Index data. 

“Investment is crucial if we are going to take advantage of reshoring and predicted growth in markets such as offshore wind, renewables and low carbon vehicles.” 

Dudley-based Midtherm Laser was one of the companies questioned in the latest barometer.

The firm, which specialises in flatbed laser cutting and folding, has seen growth across all of its markets, including automotive, aerospace, pharmacy and offshore oil and gas. 

“We embarked on a major expansion and factory extension in 2012 and this is really paying dividends with the additional capacity helping us heading towards £4.5m of annual sales,” explained director Dean Cockayne. 

“This includes winning work that was previously completed in China, a real reshoring boost for the UK.” 

He continued: “Our growth has dictated the need for more staff and we’ve decided to go down the route of taking on apprentices so we can start to train our own engineers.” 

Midtherm Laser is looking to invest again shortly, with the acquisition of another Bystronic flatbed laser cutter. 

Of the firms who took part 73 per cent said they were looking to purchase new plant and machinery, just over half are focused on upgrading IT/communications infrastructure and over a third on improving premises. 

The main reasons driving these investment plans were developing new products/processes (35 per cent) and boosting efficiency/quality (33 per cent), followed by extending existing capacity (21 per cent). 

Just a quarter of firms said they planned to approach banks to fund capital equipment purchases in the next year, with manufacturers also choosing to secure money via grants (31per cent and the Regional Growth Fund (27 per cent). 

A record 115 West Midlands SME manufacturers responded to the latest MAS Barometer, which provides an overview of economic conditions and issues faced by the sector during October to December. 

Three fifths of companies reported an increase in sales over the last six months - a three per cent rise on the last report.

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