Investing in the skills of their workforce appears to be a main priority for Isle of Wight’s small and medium sized manufacturers (SMEs) it was revealed this week.
The latest Manufacturing Barometer – produced exclusively for the Business Growth Service – reports that in London and the South East 73% of respondents are planning to increase spending on developing their people in a bid to unlock the ‘productivity puzzle’. This figure is slightly higher than the national response of 71%.
This outstrips the desire from companies to achieve productivity gains through increased investment in new capital and machinery (64%) or implementing computer software and systems (61%).
Skills were a strong theme throughout this report, with 71% and 62% of manufacturers in the London and South East regions stating that the skills of their management teams and non-managers respectively supported their growth.
Stephen Peacock (pictured above), Head of the Business Growth Service explains:
“The race to improve productivity has been widely discussed over the past twelve months and the findings of the latest Manufacturing Barometer clearly show that the majority of smaller manufacturers are prepared to increase spending to gain better performance.”
“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.”
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East Cowes-based Aluminium Marine Consultants specialise in the design and manufacture of aluminium work boats and their prime market is the offshore wind industry. The company has over 45 permanent staff, and further employs over 20 sub-contractors. Grant support has enabled them to take on over thirty five new full-time employees this year, including two trade apprentices.
Rob Stewart Commercial Directors says:
“The skill of our workforce is vital to our company growth as we now compete for work with yards worldwide. The support we have received enables us to invest in new equipment and ongoing training for all the staff. The grants helped us achieved ISO certification for management ISO 9001, Health and Safety ISO 18001 and Environment 14001. We are now quoting for a number of new vessels including both hybrid powered vessels and the revolutionary Voith linear jet.”
Stephen Peacock continued:
“Our Business Growth Managers on the ground are also reporting a rise in the number of manufacturers requesting support for leadership and management training to help with strategy, succession planning and entering new markets. This is something we can provide funding for through the Business Growth Service.”
The Manufacturing Barometer is the largest survey of its kind, reflecting the views of 529 senior leaders running SME manufacturers across England, employing approximately 16,000 people.
For further information, visit www.greatbusiness.gov.uk/mas.
