2016/17 MHA Manufacturing and Engineering Annual Report

Posted On October 10, 2016 By mhauk

me-report-thumbnailOur 2016/17 MHA Manufacturing and Engineering Annual Report is now available.

Drawing on national and regional insight from over 560 clients and contacts, the findings of our recent report identify opportunities and concerns, signposting future developments in the sector. Despite Brexit, the report reveals that optimism in the sector is still high and respondents continue to have a positive outlook for the coming year. The respondents were from a variety of sub-sectors within Manufacturing and Engineering including: Aerospace, Automotive, Agriculture, Biotechnology, Chemical, Construction, Electrical and Electronic, Food and Drink, Healthcare, Leisure, Metals, Minerals and Materials, Oil and Gas, Pharmaceuticals, Renewables and Transport to name but a few.

The report contains a national snapshot from each of our 8 member firms covering England, Wales and Scotland. Along with commentary from sector expert Philippa Oldham CEng MIMechE, Head of Transport and Manufacturing at the Institution of Mechanical Engineers and insight from Mike Mychajluk BA FCA, Member of the Automotive Council Supply Chain Group, Chair of the ICAEW Manufacturing Special Interest Group and Supply Chain & External Engagement at Jaguar Land Rover Limited and from Professor Rajkumar Roy, Director of Manufacturing at Cranfield University.

Main findings:

  • Half of all respondents put skills shortages at the top of their agenda. Most businesses’ want government to expand skills training for the future work-force in Secondary Schools, Higher and Further Education (FE) colleges.
  • 68% of respondents believe their main competitors are UK based and 32% said their main competitors are based within their own region of the UK.
  • 47% of respondents expect to increase their staff numbers in 2016 (an increase of 8% from last year), with 57% of companies intending to take on apprentices or trainees.
  • Of the respondents that anticipate their staff numbers will increase in the next 12 months, over half (59%) need to recruit production staff. However, 41% indicated that they have trouble recruiting skilled machinists / technicians.
  • 18% of businesses reported that recruiting appropriately skilled staff is the main barrier to growth over the next 12 months; this is a decrease of 10% from last year which is encouraging, although this may just be a reflection in the shift of concern towards the effects of Brexit.
  • Where recruitment is a barrier to growth, 31% of respondents favoured adopting lean manufacturing strategies and 23% favoured automation or further automation as a coping strategy. Shift working or flexible working patterns (25%) was also seen as a viable option.
  • When asked about the availability of skilled recruits, only 11% had a positive outlook compared with 49% having a negative outlook.


Our member firms are hosting a wide range of events to launch the report and to discuss the issues raised in more detail. Click on your local member firm to find events near you.

Broomfield & Alexander – Wales;  Carpenter Box – South Coast;  Henderson Loggie – Scotland; Larking Gowen – East Anglia; MHA MacIntyre Hudson – London, Midlands & South East; Monahans – South West; Moore & Smalley – North West; Tait Walker – North East.

If you would like to discuss any issues raised in the report in more detail or you would like to speak with a member of our team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with your local representative.