The latest Markit Business Outlook has recently been published and overall it makes very positive reading. A net balance of +58% of organisations across the manufacturing, construction and service sectors expect rising activity over the next 12 months which is an increase from +52.9% on the last survey published in February. Of these sectors the manufacturing sector is the most buoyant with a net balance of +61.7% of firms anticipating growth in activity.
Within the manufacturing area, most organisations are confident that their profits will continue to rise, with a net balance of +50.9%. However the expected increase in staff employed remains static at +26.1% while R & D expenditure has decreased from February to +21.6% from 22.1%. All other growth indictors such as capital expenditure, non-staff input costs, staff costs and output prices continue to rise.
However it is not all good news as there are a number of clouds on the horizon within the manufacturing sector which are effecting business confidence. These include the Greek crisis, the EU referendum, interest rates and the increasing skill shortages. Manufacturing organisations require a stable economy with a highly skilled workforce and as the economy continues to grow these threats will play a great role in how businesses foresee the future.
The recruitment industry needs to keep abreast of these challenges in order to adapt to a continually evolving market and meet our client requirements with as innovative solutions as possible.
If you would like to discuss this in more detail email CK Engineers Operations Director Liam O’Connell on email@example.com