Manufacturing: profits down, positivity up

News Article - 29 March 2010
Category: Business

Recent research by Santander Corporate Banking revealed in the last six months almost three times as many manufacturers have seen profits dip compared to those that have enjoyed a more profitable bottom line.

Santander found profits were down for 59% and up for 20% of manufacturing companies. These figures suggest the manufacturing industry mostly mirrors the business sector as a whole, where 50% of companies experienced reduced profits and 21% a better bottom line.

Yet manufacturers show greater confidence than other sectors regarding their prospects for the first six months of 2010, although only by a small margin. The Santander Corporate Banking Confidence Index revealed 78% of manufacturing company owners are confident their business will fare well over the coming months. This compares with a 74% average for businesses in all sectors.

At the other end of the scale 22% of companies are not very confident about the future with 2% reporting no confidence at all. In addition, larger firms seem to be coping with the uncertain economic climate more successfully than smaller ones. 81% of companies with a turnover of £25m or more are either 'confident' or 'very confident' about the near future and report average profit rises of 14.1% in the last six months.

The manufacturing industry was hit particularly hard by the recession and has struggled to return to pre-crisis conditions. These figures suggest that while profits have still not stabilised, confidence is widespread and growing, and the manufacturing sector should experience a more successful 2010 as the market slowly gains traction.

Businesses working in this industry must have sufficient liquidity to ensure operations are able to adapt to rapidly changing market conditions. This will prove essential as supply and demand is unlikely to stabilise for some time. Access manufacturing and production software gives companies powerful software functionality that automates everyday tasks such as shop floor data capture, MRPII and capacity planning. By developing a stable and scalable infrastructure, businesses can help ensure operations remain efficient as demand increases.

For more information on how a business software solution can automate and streamline daily processes within mid-market manufacturing companies, please call Access on 0845 345 300 for a free consultation.

Article keywords: Access, manufacturing software, production software, business software solution, business process automation,

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