Clearview Midlands September 2013 - Issue 142 | Page 4

fromtheeditor

The feel-good factor that first became apparent at the FIT Show in April has proven to be well substantiated by continuing to grow over the past few months.
This was recently confirmed in revised figures from the Office for National Statistics (ONS) stating that growth was up to 0.7 per cent in the second quarter of this year. The Chancellor, George Osborne, commented that the upward revision is confirmation that the UK is “moving from rescue to recovery”. And that would certainly seem the case in this September issue of Clearview. As, the article below goes on to explain, English manufacturers are ready to invest and those that have innovated in terms of new products and processes have seen a return on sales. The fenestration industry has followed suit and testament to the theory that confidence is growing. On page 10 Door-Stop is taking an innovative approach of making way for new stock by selling slabs on eBay. On page 20 West Country Glass has made it’s vote of confidence with a £50k investment towards its factory, machinery and workforce. On page 30 Sun Trade has also invested in new, larger premises to meet the increasing demand from customers and Glazerite and CDW Systems both report growth on page 38. This renewed demand has perhaps come as a result of homeowners relaxing their purse strings as disposable income become more readily available. New build project starts are also on the increase as the article on page 37 shows. But it is important now, in order to maintain this impetus, that businesses make sure they are well prepared to take advantage of the increase in activity. Jim Moody on page 36 suggests the way to profit is through margin. Becky, Editor

ENGLISH MANUFACTURERS WANT TO INVEST
English manufacturing SMEs are ready to invest, the latest Manufacturing Advisory service Barometer suggests. Half of the 682 companies surveyed in the study expect to spend more on new machinery and premises over the next six months, a rise of 12% on the same period last year. 53% of respondents reported an increase in sales in the first half of the year, and an all time National Barometer high of 67% predicted further growth over the next six months. David Caddle, area director for the Manufacturing Advisory Service, commented: “Manufacturers tend to be very cautious and traditionally would have needed significant confidence in the longterm future to relax the purse strings. “Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad. “It is a reassuring finding and appears to meet the EEF’s recent call for the sector to fund more research, innovation and export growth. “This sense of optimism is also present when it comes to employing new staff. 43% of SMEs (up 3% on the last report) are planning to hire new people with a further 50% expecting to keep workforce levels the same. Business and Energy Minister Michael Fallon said the results were encouraging for the sector, and the economy in general. 82% of respondents reported that new products introduced over the last two years had led to new sales. Over a third of respondents said new sales accounted for 25% or more of their total turnover. Mr Caddle added: “The results in this special focus indicate that there is a strong link between innovation and increases in both company growth and profitability. “This is why being innovative has never been so important for manufacturers. We are helping to encourage innovation in SMEs through our New Product Development programme, which provides support in developing, validating and bringing new ideas to market.”

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SEP 2013

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