Small Manufacturers Plan 2014 Investment Boost

6th February 2014

CBI Survey Reveals Strong Levels of Confidence Amongst SMEs The UK's smaller manufacturers expect to significantly increase their levels of investment during 2014, according to a new report.

The CBI's latest SME Trends Survey questioned 335 small and medium-sized manufacturers and found that total orders and the volume of output increased in the three months to January. 37% of firms reported an increase in total new orders with 34% of SMEs claiming an increase in domestic orders. On the back of greater confidence, planned investment spending on buildings for the year ahead rose to record levels and that on plant and machinery strengthened further. Plans to spend on buildings rose by 14%, the strongest increase since the data began in October 1988. Plant and machinery investment intentions were reported to be at their strongest since July 1995. Stephen Gifford, CBI Director of Economics, said: "As the recovery takes hold, the investment cycle is starting to turn. It's encouraging to see smaller manufacturers planning to boost investment, particularly in their plant, machinery and buildings. Orders and output continued to grow at a healthy pace, although not as fast as predicted. However, firms remain optimistic about prospects, with growth in orders and production expected to accelerate." Steve Beahan, a partner in the Sheffield office of Irwin Mitchell, said: -This in another very positive report from the CBI and it paints a very positive picture about the manufacturing sector. -It is important not to be complacent however because in order for the UK economy to continue growing, it is essential that small and medium-sized operators receive the support they need. They are central to creating a more balanced and sustainable economy and as demand increases, it is vital they have the necessary funding lines in place and support to ensure that they can take advantage of overseas' trade opportunities. -It is also important that these smaller businesses take expert advice. Many manufacturers are on a very exciting journey towards expansion, but they must seek advice from the advisory community, including lawyers, and choose people who understand their sector and their needs.