October 2011
MANUFACTURING &LOGISTICS
IT Alive and kicking
You could be forgiven for thinking that all is not well with the world – at least from an economic perspective – when reading the national newspapers or watching the news channels. However, although the broader economy at home and abroad certainly requires no small dose of TLC, UK manufacturers would certainly seem to be one of the more confident sectors regarding prospects over the next year or so. Indeed, the vast majority of SME CEOs are even forecasting strong growth. According to recent research from UK private equity firm ECI Partners, an encouraging 82 per cent of manufacturing businesses expect to see turnover growth of more than 6 per cent over the next year, while a quarter are predicting a rise of more than 20 per cent.
Prospects for job creation are equally positive, with 79 per cent of manufacturing CEOs expecting to add to their firm’s head count, and 24 per cent forecasting growth in employee numbers of more than 6 per cent. This rosy outlook was detailed in ECI’s second annual Growth Survey, which questioned close to 250 chief executives across the UK about their expectations, aspirations and growth strategies for the year ahead. Overall, the 2011 respondents were even more bullish about growth prospects than last year, when 68 per cent of respondents expected to grow employment over the 12 months. This year, the figure was 74 per cent, despite predictions of falling private sector employment from media commentators and economists. Private sector employment has already grown by more than 500,000 over the next 12 months, according to ONS data. ECI's findings indicate a positive trend among UK growth companies (those with a turnover between £10 million and £200 million), which employ more than 7.5 million people, accounting for more than one third of private sector jobs in the UK.
Ed Holden Editor
Mark Prisk, Minister of State for Business and Enterprise, recently remarked it was good news that, despite a tough few months, nearly three quarters of the SMEs surveyed by ECI are looking to recruit over the next year and half expect to see substantial profit growth in that period. “Up and down the country, it is Britain’s SMEs that are driving our economic recovery,” he said. “This Government is absolutely committed to supporting the private sector as it creates jobs and sustainable economic growth. That’s why we’re cutting business taxes, backing start- ups and tackling burdensome red tape.” Steve Tudge, managing director of ECI Partners, added: “Despite the barriers to growth which are principally cited as a weaker macro environment and funding constraints, we continue to be optimistic about the prospects for good mid-market companies.” The results of the ECI’s Growth Survey certainly make comfortable reading and act as a very welcome break from the general gloom that permeates so many economic reports at the moment.
October 2011
MANUFACTURING &LOGISTICS
IT
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