02 December 2011

What recession? Manufacturers in bullish mood over 2012, WM survey finds

British manufacturers are defying the eurozone crisis and gloomy PMI data to report heady optimism over business prospects in 2012 according to WM's Manufacturing Outlook 2012 report.

Almost 60% of manufacturers said they were upbeat over the outlook for 2012. Three quarters think next year will be as good as 2011 or even better with respondents already ranking this year as the best for business since the mid 90s.

The bullish mood jars with official CIPS/Markit data released yesterday showing manufacturing PMI has sunk below the 50 benchmark for growth for the second successive month.

But WM's survey of nearly 160 senior factory managers and directors found factories in rude health. Nearly 70% ranking their morale as good to high. A quarter say they loved the job so much they can't wait to get going again next year and just 1% confess to thoughts of quitting.

Manufacturers are also looking to invest. Almost 80% plan to match or increase investment from last year with the most popular outlay being new machinery to keep up with buoyant orders. A quarter will increase investment by over 10% in the next 12 months.

Richard Hudson, kaizen co-ordinator at Triumph Motorcycles said: "Manufacturing just seems to be very resilient. I'm always hearing how busy people are when I talk to my colleagues. I think we generate wealth in a way many other sectors don't. Continuous improvement has definitely played a part. If you eliminate waste it's puts you in really good shape for tough economic times."

Several decades on the sidelines of UK plc meant today's manufacturers are well placed to deal with economic headwinds said Nitin Patel, operations director at Glen Dimplex Appliances.

He told WM: "A lot of companies have been forced to improve or die out. The survivors feel that having coped when the worst happened they can take on all comers. It's almost a Dunkirk spirit.''

Manufacturing may have been a buzzword for Coalition ministers in 2011 but David Cameron's team can take no credit for the UK factory renaissance, WM found. Just 4% say policies including extended R&D tax credits and capital allowances have boosted profits. Nearly 20% claim measures introduced this year had actually made life tougher while 78% reported no difference.

Full coverage of the WM Manufacturing Outlook survey in our December issue.

Author
Max Gosney

Supporting Information

Companies
Glen Dimplex Home Appliances Ltd
Triumph Motorcycles Ltd

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