03/05/2011
The UK's small and medium-sized manufacturers saw the volume of domestic and export orders rise at the fastest rate since April 1995, reports hrmagazine.co.uk.
Of the 414 respondents to the CBI's latest quarterly SME Trends Survey, 39 per cent report a rise in the volume of domestic orders in the three months to April, and a 23 per cent fall, giving a balance of plus 16 per cent.
For export orders, 37 per cent said volumes increased and 14 per cent said they declined, giving a balance of plus 23 per cent.
An increased growth in production could lead to smaller firms growing as a company. In order to accommodate even more growth, SME's could utilise sales finance as a way to free up cash left in unpaid invoices.
Lucy Armstrong, chair of the CBI's SME Council, hailed the figures, stating: "Smaller manufacturers are enjoying strong demand for goods at home and abroad, underpinning robust growth in production.
"Headcount has increased for the third consecutive quarter as firms try to keep up with demand, and output is expected to rise again in the coming months."
She also told nebusiness.co.uk that growth had been driven by a surge in inventory levels after "massive de-stocking" during the recession.
Ashley Curtis