UK small manufacturing firms receives boost in production

News Article - 16 February 2011
Category: Industry

The Confederation of British Industry (CBI) recently reported that small firms have seen production improve in the quarter to January, with domestic demand for UK-made goods increasing.

According to the CBI's SME Trends Survey, 30 per cent of respondents reported an increase in output volume while 17 per cent reported a fall - a positive balance of 13 per cent.

Lucy Armstrong, chairman of the CBI's SME Council, said: "Manufacturing is one of the few bright spots in the economy and this survey underlines the important role of smaller firms in delivering growth and jobs.

"With domestic orders steadily improving and production rising, firms are increasing their headcount to keep up with demand."

The CBI survey also suggests that manufacturing workforces are expanding at the fastest rate of growth since April 1995. The improvement in domestic demand has been highlighted as a significant factor contributing to this expansion.

Measures to help smaller companies export goods abroad are also being discussed at parliamentary level. The widening trade deficit in goods and services has developed because the nation has "consumed too much and exported too little", according to Business Secretary Vince Cable.

Mr Cable subsequently announced a host of new schemes as part of a 'Trade and Investment White Paper' aimed at giving small to medium-sized businesses a helping hand.

Peter Ibbetson, chairman for small business at Royal Bank of Scotland, welcomed the Government's plans.

"The extension of this scheme to exporters is a welcome step which will be hugely valuable to UK businesses and play an important part in supporting the economic recovery," he said.

Manufacturers will be encouraged by this news; with the talk of economic slowdown over the first quarter of 2011 this will no doubt increase confidence in the ability of the manufacturing sector to weather the storm. However, firms should proactively strengthen internal processes to help ensure long-term operational efficiency throughout the year.

Access business software can provide a solution to consolidate businesses' control over stock levels, helping to improve cash flow. Inventory management and stock control systems give companies complete visibility for pricing, forecasting and more.

For more information, please call Access on 0845 345 3300.

Article keywords: Confederation of British Industry, CBI, SME Trends Survey, Lucy Armstrong, SME Council, Business Secretary, Vince Cable, Trade and Investment White Paper, Peter Ibbetson, small business, Royal Bank of Scotland, manufacturing businesses, Access business software, inventory management, stock control systems

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