The survey of 200 senior managers and decision-makers found a number of challenges impeding SME manufacturing growth.
Inflation was viewed the biggest challenge, with 78 per cent listing this as a threat to their business. This was followed by the deteriorating value of the pound (40 per cent), import and export regulations (39 per cent) and mounting wage pressures (29 per cent).
Manufacturing currently comes under the remit of the Minister of State for Industry, a role covering retail, consumer goods, personal care, professional and business services, hospitality, weddings and nightclubs.
The survey also found that 52 per cent of the UK’s exporting SME manufacturers believed the fluctuating value of the pound had become a significant challenge, and 38 per cent said the complexity of administrative processes was also creating difficulties. The research showed that exports were found to be contributing 19 per cent of overall sales for UK SMEs.
In a statement, Sam Burgess, CEO at SamsonVT, said: “British manufacturers have been under enormous strain over the last 12 months as costs continue to rise, supply chain issues worsen and the possibility of a recession nears closer and closer. With exports contributing almost a fifth of the industry’s revenues, the current fluctuation of the pound isn’t helping matters either.
“In light of these challenges, it is understandable that manufacturers want a minister that can represent their interests at the highest level of government and take steps to mitigate their struggles. The appointment of a dedicated Minister for Manufacturing, who can give their full attention to the plight of the industry would certainly be a step in the right direction here.”
Andrea Wilson, director at Hone-All Precision, has led a campaign calling for the appointment of a dedicated Minister for Manufacturing.
“It’s no surprise that over 71 per cent of the manufacturers surveyed support the idea of a dedicated Minister for Manufacturing, while only nine per cent do not,” she said. “Based on the conversations and feedback I’ve received, the remaining 20 per cent are probably not sure about supporting this proposal due to a lack of faith in the performance of our politicians.
“UK manufacturing is a huge contributor to the UK economy and deserves a representative within senior government to ensure the needs of our businesses are heard, and then acted upon, to create a secure, stable, and successful UK supply chain for our future prosperity.”
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