Media Release

14 October 2015

Berkshire Manufacturers' Priority is People over Machinery & Software

Investing in the skills of their workforce appears to be a main priority for Berkshire's small and medium sized manufacturers (SMEs) it was revealed today.

The latest Manufacturing Barometer - produced exclusively for the Business Growth Service - reports that in London and the South East 73% of respondents are planning to increase spending on developing their people in a bid to unlock the ‘productivity puzzle'. This figure is slightly higher than the national response of 71%

This outstrips the desire from companies to achieve productivity gains through increased investment in new capital and machinery (64%) or implementing computer software and systems (61%).

Skills were a strong theme throughout this report, with 71% and 62% of manufacturers in the London and South East regions stating that the skills of their management teams and non-managers respectively supported their growth.

Stephen Peacock, Head of the Business Growth Service explains:

"The race to improve productivity has been widely discussed over the past twelve months and the findings of the latest Manufacturing Barometer clearly show that the majority of smaller manufacturers are prepared to increase spending to gain better performance."

"What is perhaps a little surprising is that increasing investment in skills is seen as a greater priority than capital and machinery. This shows the importance firms appear to be placing on ensuring they have the right people to grow their business and this spans from retaining key staff and employing apprentices, to continuously improving existing employees."

Stephen Peacock continued: "Our Business Growth Managers on the ground are also reporting a rise in the number of manufacturers requesting support for leadership and management training to help with strategy, succession planning and entering new markets. This is something we can provide funding for through the Business Growth Service."

Berkshire's Business Growth Manager is Alba Hulse. Email her for details on:Alba.L.Hulse@uk.gt.com

The Manufacturing Barometer is the largest survey of its kind, reflecting the views of 529 senior leaders running SME manufacturers across England, employing approximately 16,000 people.

The findings reinforce recent economic data highlighting a general softening in the marketplace, with indicators - including predicted sales turnover increases in the next six months - falling back to the same level seen two years ago.

Half of firms in London and the South East reported an increase in sales over the last six months, with 68% companies expecting to see an increase in their sales between now and the end of the year. The appetite for new machinery and premises fell by 5%, whilst spend on new technology is expected to increase by 44% in the next 6 months.

Stephen continued: "There is a lot of global uncertainty at the moment, with exchange rate fluctuations, the falling price of oil and China's economic performance posing significant questions over economic growth.

"This naturally cascades its way down the manufacturing supply chain and the smaller firms need to plan ahead to make sure they can cope with all scenarios, whether there is a general slowdown, delays on orders or sudden increases in volume as market confidence returns."

The Business Growth Service brings together GrowthAccelerator and the Manufacturing Advisory Service, with additional elements from the Intellectual Property Office (Intellectual Property Audits) and the Design Council (Design Mentoring).

It also refers SME manufacturers to the right support provided by other agencies, including UK Trade & Investment, Innovate UK (including High Value Manufacturing Catapults), the British Business Bank, local Growth Hubs and UK Export Finance.

For further information, please visitwww.greatbusiness.gov.uk/masor follow @BGS_tweets/@mas_works on Twitter.

* The Manufacturing Barometer is the largest independent survey of SME manufacturing companies operating in England and has been running since 2009. The survey takes input from a number of stakeholders but remains independent. The Manufacturing Barometer is owned and operated by SWMAS Ltd (www.swmas.co.uk)

ENDS

For media enquiries for MAS, London and South East:

Judi Ammari, Account Director

Harvest Marketing Communications

judi.ammari@harvestpr.co.uk

Tel: 07960 888494

Note to Editors

About the Manufacturing Advisory Service (MAS)

Now part of the Business Growth Service, MAS provides growing manufacturers in England with access to specialist support and guidance in helping them improve and grow.

Backed by Government, MAS has a team of expert advisors on the ground working with management teams to plan long-term strategies, improve processes, bring new products to market and develop their supply chains. The Business Growth Service provides expert, tailored support for growing businesses; this includes advice for growth, export and finance.

It brings together successful Government-backed support services, including GrowthAccelerator and the Manufacturing Advisory Service, into one wider offer, making it simpler for businesses to access the support they need to grow.

 t. 0300 303 3034 w.www.greatbusiness.gov.uk/mas.

e.advice@mymas.orgTwitter: @mas_works/@bgs_tweets