The Engine Issue 8

Read the detailed review from our recent national manufacturing temperature check

The COVID pandemic has undoubtedly had a significant impact on our lives and on business changing the “normal” to “new normal” and six months after the first nationwide lockdown across the UK, MHA surveyed its manufacturing clients and contacts across the country to assess the impact this was having.

We posed six questions which we intend to return to on a quarterly basis to see how the answers might change and in this edition we provide a summary of our findings and measure the overall mood of the industry during this difficult period.

The next article we focus on is the manufacturing outlook from the view of the North West and West Midlands regions of the UK. Showing a spotlight on what regional industries are trading well and recovering quicker, also highlighting where government support is needed the most to help manufacturers return to pre-COVID levels of trading.

No insight would be complete without talking about the other hot topic of the moment – Brexit. With negotiations between the UK and EU no closer to agreement the scales are tilting ever more to the UK leaving the EU with no deal in place.

Head of Sector at MHA UK, Chris Barlow comments on what the industry views are towards a no deal Brexit and what he recommends manufacturers need to put in place now to protect supply chains, operations and international trade.

Contact us

To discuss any of the matters raised in this edition please get in touch with Ginni Cooper, Partner or alternatively contact us here.

This update originally appeared on the MHA-UK website.

Our Manufacturing and Engineering temperature check is now open!

The MHA Manufacturing & Engineering specialist team works closely together to ensure our clients in the sector are supported during these challenging times. 

We are running a Manufacturing & Engineering temperature check to help compile a nationwide picture of the state of the sector. Your feedback will help our specialist advisers gauge where the sector is and what can be done to respond to current challenges.  

This mini survey focuses on the impact of COVID-19 on the Manufacturing and Engineering sector and how firms are responding to industry changes.    

The survey should take no longer than 1 minute. It will be used to compile benchmark data, which will help us better understand how the sector is responding to current challenges.

If you have any queries about the survey or would like to know more about the services MHA Moore and Smalley provide, please contact Ginni Cooper.

Welcome to the seventh issue of The Engine from MHA’s specialist Manufacturing sector team

Whatever adjective you might use to describe the current time, and there are many, it is unlikely to be a period that we will forget in a hurry.

The Government has provided unprecedented levels of support to businesses and encouraged manufacturers to remain open. They have asked the sector to consider if they can help to “answer the call to action” and play a “direct role in combating Covid-19”. Many manufacturers have risen to the challenge and our first article highlights a few examples of these.

Our second article focuses on the value of finding a way to visually engage staff toward a unified goal. The Government has managed to get us to understand “the Curve” and the need for this to be flattened as part of the fight against Covid-19. We highlight a way that this can be used to focus on cash – so important at this time.

One of the ways that the Government has offered help is via CBILS (Government backed loans) but businesses need to be properly prepared ahead of any lending application. We have summarised a few helpful tips.

Finally, we highlight the quandary that businesses face in choosing between two different types of state aid; CBILS and R&D tax reclaims.

To download a copy of the newsletter please click here. If you would like any further information on the topics featured in this newsletter please contact Ginni Cooper.

MHA Manufacturing and Engineering Report 2019/20 – Video Part 2

Investment is key for growth in the sector.

As in previous years, answers to the various sections of the survey brought about some recurring themes and also a couple of surprises e.g. Business confidence.

When asked specifically about revenue growth– results are optimistic and at a similar level to last year – 70% of respondents anticipating growth over the next 12 months (71% last year). 64% of respondents are planning to invest in R&D – It is encouraging that 89% of respondents invested in R&D in the last year but frustrating that only 48% of those who invested successfully applied for R&D tax credits.

Click here to read the full report.

MHA Manufacturing and Engineering Report 2019/20 – Video Part 1

Compare your business against national findings.

The survey is a national one and this is the 8th year we have run it. We had in excess of 230 responses this year, from businesses of varying sizes and maturity.

A key change this year in the way we have utilised and presented the survey findings has been to engage with our Data Insights Team. In addition to collecting the responses to the survey, we have also carried out a benchmarking exercise with publicly available data on over 1,000 companies within the same geographical and financial parameters so that we can compare and contrast findings.

Click here to watch Part 2 – Investment is key for growth in the sector.

Click here to read the full report.

Manufacturing and Engineering Report 2019/20

Manufacturing & Engineering Annual Survey Report: UK SME manufacturers continue to grow and build resilience

Our MHA Manufacturing & Engineering Survey Report, now in its seventh year, is a go-to report when it comes to understanding the sector, its opportunities and challenges.

We benchmark SMEs across the UK to paint a national picture of the Manufacturing and Engineering sector. To broaden the content of this report and make it more useful as a benchmarking exercise we have changed our methodology this year. In addition to collecting responses to a client survey, we compare this to in-depth quantitative analysis which has been done in conjunction with our Data Insights team.

This years’ report reveals that while global economic conditions, Brexit/future trading tariffs and staff shortages impacted growth, SMEs remain buoyant and they’re building resilience by increasing their assets, reducing borrowing and re-evaluating supply chains.