Manufacturing and Engineering Annual Report 2017/18


Key Findings: The MHA manufacturing and engineering survey indicated a number of consistent trends: 20%


of respondents stated that they have lost staff or are at risk of losing staff as a result of the Brexit vote.


22%


of respondents put skills shortages at the top of their agenda. Most businesses want to see government action on expanding skills training for the future work-force at all levels of education, from Secondary Schools to Higher and Further Education (FE) colleges.


Improved productivity and efficiency is the strategy which most companies deploy in order to absorb price increases (44%).


62%


took the view that they could not pass on any increased costs to customers.


This is down by 9% compared to last year. 16%


Despite uncertainty surrounding Brexit, optimism for growth over the next 12 months is up with


78%


of respondents predicting growth for their business.


92% of respondents see


Industry 4.0 as an opportunity


51% 59%


are planning on taking on apprentices in the next 12 months.


Of the respondents that anticipate their staff numbers to increase in the next 12 months,


64%


need to recruit production staff;


This is up 5% from last year. 5


35% ?


17%


of businesses reported that recruiting appropriately skilled staff is the main barrier to growth over the next 12 months.


of respondents export, with the Eurozone being the most popular destination


96%


of exporting respondents export to the Eurozone.


currently don’t have a strategy in place to access Apprenticeship Levy funding.


A further 19% say they have no training needs, whilst 26% say they don’t understand the system.


In line with last year


respondents said that Brexit concerns and uncertainty over future trading tariffs etc. was their main barrier to growth over the next 12 months.


94% 77%


of respondents felt their cost of production would rise in the coming year.


A RANGE OF FACTORS CONTRIBUTED:


60% £


believe that raw material costs will rise


cited increasing wage costs


45%


expect increases in the price of


components (directly or indirectly through currency fluctuations).


66%


of respondents believe their main competitors are based within the UK, with 35% of them saying that they face competition within their own region of the UK.


88% 57% 44%


of companies invest some percentage of their turnover in R&D. However, only


of respondents successfully applied for R&D Tax Credits.


Only Of the 25% 75%


of respondents indicated that they can recruit as needed.


that can’t, 46% have trouble recruiting skilled machinists / technicians.


This has increased by 5% in a year. Also, 39% have trouble recruiting experienced engineers.


Where recruitment is a barrier to growth, 18% 16%


of respondents favoured adopting lean manufacturing strategies


favoured automation or further automation as a coping strategy.


macintyrehudson.co.uk www.mha-uk.co.uk


of respondents expect to increase their staff numbers in the next 12 months


An increase of 10% from last year.


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