Skills investment the priority for SME manufacturers

Based on the feedback of over 500 senior leaders from across the sector, the survey found that 71 per cent of respondents intend to invest in their workforce to increase productivity. This compares with 62 per cent who plan to invest in new capital or machinery, and 56 per cent who say they will implement new software and systems.

“The race to improve productivity has been widely discussed over the past twelve months and the findings of the Manufacturing Barometer clearly show that the majority of smaller manufacturers are prepared to increase spending to gain better performance,” said Stephen Peacock, head of the Business Growth Service.

“What is perhaps a little surprising is that increasing investment in skills is seen as a greater priority than capital and machinery. This shows the importance firms appear to be placing on ensuring they have the right people to grow their business and this spans from retaining key staff and employing apprentices, to continuously improving existing employees.”