By Fiona Ness on Thu 10 April 2014 in Topical
It was announced this week that the UK’s manufacturing industry has seen a growth of 3.8% since February last year. This is the fastest growth of the industry in over two and half years.
Adding to this the UK is seeing promises of fresh investments totaling hundreds of millions of pounds into manufacturing which goes some way to prove there’s a reason to be optimistic.
In fact, with over 85% of manufacturing companies confirming that they are planning to invest, it feels like manufacturing might finally be seeing the light at the end of the tunnel.
However, we all know that with bigger investments come bigger risks. So, what are the main focuses of these investments and more importantly will they pay off?
So far it looks like investments are being driven by a need to increase capacity, develop new products and processes, but most importantly efficiency taking 31% of the vote. The key focus on efficiency has resulted in manufacturers opting to focus their investment on machinery and new technology.
In order to cope with this sudden growth, manufacturing companies, big and small, have to ensure that they can not only keep up with production levels, but increase efficiency as a whole. There will definitely be a focus on improving poor systems, processes or strategies to ensure they do not take a step backwards in a forward moving time.
Asking if these investments will pay off is a much tougher question to answer. A couple of good years doesn’t mean manufacturing is out of the woods, but the willingness to embark on new investments shows a confident and positive attitude towards UK manufacturing – something that hasn’t been seen for a significant period in this industry.