SMEs on the up says MAS survey

More than half (55%) of the 607 companies questioned expected to grow between now and March 2013, with 41% of firms saying they intended to boost investment in plant and machinery. There was also a moderate increase in those planning to spend on new technology (38%). This cautious optimism comes after a slight softening in the marketplace that has seen the number of businesses reporting increased sales drop to just 45%, down nearly 8% against the previous survey. As part of the Special Focus, the Barometer also aimed to find out what sectors SMEs are selling into, with the findings showing materials/general engineering as the most popular (42%), closely followed by automotive (39%) and defence (35%). When asked about future sales growth to 2016, aerospace, marine, off shore wind and rail appear to be attractive propositions for companies looking to increase moderate sales to a significant level. MAS Area Director Lorraine Holmes (pictured) commented: "Manufacturers have been reporting fluctuating demand and softening in certain sectors so to see the renewed optimism suggests many believe these markets are coming back on stream. Business Minister Michael Fallon said: "It's encouraging to hear of the optimism amongst manufacturing SMEs in this Barometer. Of course, these are still challenging times, but the recent GDP output is the latest sign yet that the wider economy is starting to recover. "We will continue to support manufacturers through MAS to ensure they are best placed to take advantage of opportunities to grow." This is the third National Barometer conducted by MAS and provides a snapshot of trends in English manufacturing SMEs from July to September 2012, as well as an overview of economic conditions and issues faced by the sector.