Business boost

The quarterly Manufacturing Institute survey of business challenges among manufacturers in

signals improved confidence.

According to the survey, 48 per cent of respondents said that they expected their business to grow over the next 12 months, which was more than double the percentage for the previous quarter.

The number of businesses expecting business to remain static over the next 12 months remained at one-third of recipients. Those more pessimistic businesses expecting business contraction had reduced from 50 per cent to 23 per cent.

According to the survey, the major challenge facing manufacturers is the need to reduce production costs, with the cost of raw materials, reduced sales and reduced margins also highlighted as key issues.

Respondents were asked how the current climate is affecting investment decisions – revealing that continuous improvement, marketing activity and new product development were areas of higher investment compared with the previous year, while expenditure had been cut on staff and inventory.