Small manufacturers 'booming'
Small and medium sized manufacturers in the West Midlands are reporting the highest rate of growth in domestic orders for more than a decade, according to a key survey.
Small and medium sized manufacturers in the West Midlands are reporting the highest rate of growth in domestic orders for more than a decade, according to a key survey.
These smaller firms have fared better over the last three months than the sector as a whole, with orders surging 12 per cent, says the CBI's quarterly findings. Steve Sharratt, chairman of the CBI's Small and Medium Enterprise Council (SME), said: "Small and medium-sized manufacturers expected this to be a strong quarter, and it has been.
Demand and output volumes showed robust growth, ahead of the manufacturing sector as a whole.
"SME firms are not complacent, and predict a tightening of profit margins in the coming quarter."
He added: "Nevertheless, SMEs see this increase in business as providing the opportunity to invest further in product and process innovation in order to enhance both competitiveness and productivity.
"Labour shortage is an increasing constraint to expansion, and a lack of skilled labour is particularly likely to hamper small firms' ability to meet demand.
"Unsurprisingly, planned investment in training and retraining has been increased during 2007 to help tackle this," he said.
The news was welcomed by Peter Mathews, president of the Black Country Chamber of Commerce, who said that the results squared well with their own quarterly economic survey.
"Our survey revealed that optimism was up, and so this is obviously welcome as it reaffirms that view.
"What we do hope is that it is sustainable, and it also indicates that despite the stock market turmoil around the world, our small and medium businesses are fighting back," he said.
Today's survey said small companies were planning to take on new workers at the strongest rate in 10 years to cope with the demand.
For the SME manufacturing sector as a whole, export orders dipped for the first time this year.
Mark Haddock is boss of Leeward Coachbuilders in Wednesbury, where the 45-strong workforce produce bodywork for commercial and industrial vehicles.
He said: "It really is very busy at the moment – we are booked up with work as well as working on an order for 500 bodyshells for the new Modec electric vehicle."
