Torrid times for small manufacturers

Manufacturing News, Source : TheManufacturer.com
Published : 18 Nov 2002 9:54

Small and medium size manufacturers have seen orders and output fall at the fastest rate for a year, according to a CBI survey published today.

Figures for the last four months show that smaller manufacturers are finding it particularly tough to break free from the manufacturing recession.

Twenty two per cent of companies said output was up over the last four months, 37 per cent said output was down. The balance of minus 15 per cent compares with minus 11 per cent in July and contrasts sharply with the expected figure of plus 3 per cent. Small firms were more negative about orders and output than medium-sized firms for tenth consecutive survey.

As a result, companies have become less confident about the general business situation and about export prospects, and this pessimism is more marked among small firms.

"Smaller manufacturers continue to face torrid times,” said Simon Bartley, chairman of the CBI's SME Council. “An unexpected fall in orders and output has damaged confidence and job cutting is expected to accelerate. Recovery hopes have been gradually revised downwards as smaller firms have come to expect a more protracted turnaround than previously hoped. With no sign of a pick-up in global demand, companies face a challenging future."

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