11/08/2010
Increased demand and availability of stocks of goods are boosting the British small manufacturing industry, according to recent research.
The SME Trends Survey from the Confederation of British Industry (CBI) has shown that in the second quarter of 2010, manufacturing output rose for almost half of the surveyed firms. Just 20 per cent of small manufacturers reported a decrease in productivity, representing a pronounced improvement compared to the first quarter of the year.
With the help of finance solutions such as invoice discounting and factoring, as well as commitment from the big banks to providing loans for SME's, the sector is recovering markedly.
Russel Griggs, chairman of the CBI SME Council spoke to New Business expressing positivity for the SME manufacturing sector, saying: ''Smaller manufacturers enjoyed a bumper quarter with production ramped up to meet growing demand and to rebuild stocks.''
''Exports are leading the charge, reflecting the pick-up in global trade and the relative weakness of sterling.''
According to The Daily Mail, the value of UK goods rose 4.3 per cent in June, with SME's and manufacturers hoping for similar improvements in the coming months. Office for National Statistics (ONS) data also revealed that the UK had never imported so much to non-EU countries, with total goods value exceeding 10.75bn.
With such a positive upsurge in output and export demands, SME's are reassured to grow their business and push forwards in a more steady market.
Sarah Howard