West Yorkshire: A new report highlights the productivity gaps faced by manufacturing SMEs in the region, emphasising the need for external support in strategy development and digital transformation, while showcasing the benefits of tailored business assistance as demonstrated by successful local firms like The Sign Group.
Manufacturing SMEs in West Yorkshire are facing challenges in unlocking their productivity potential due to gaps in knowledge surrounding strategy development, training, financial management, data-driven operations, and digital transformation. A recently released report by Oxford Innovation Advice highlights these issues, emphasising the pressing need for growth-oriented firms in the region to seek external support and resources.
The report, stemming from a comprehensive survey of over 1,000 senior managers across a variety of firms, reveals that while 87% of respondents believe they excel in customer satisfaction and 78% in leadership, only two-thirds feel they possess a formalised strategy. Furthermore, less than 75% employ a diverse range of metrics to track performance. The survey uncovered that training and incentivisation were the lowest-ranked areas, with merely 64% of managers confident in their effectiveness. The report specifically identified significant weaknesses in managing change and transformation.
Jane Galsworthy, Managing Director of Oxford Innovation Advice, articulated the importance of the findings, stating, “This is one of the most comprehensive reports we’ve ever produced into productivity in West Yorkshire and, whilst there are a lot of positives to take from it, there are some significant areas of improvement if we want the region to achieve its potential.” Galsworthy acknowledged the myriad external pressures faced by management teams today, underscoring the necessity for supportive programmes that can provide vital resources and expertise to firms.
The report was released during National Productivity Week as part of ongoing efforts to improve productivity across the region. It specifically calls on the Government and policymakers to enhance support initiatives to target key areas identified in the study. Recommendations include ensuring every SME has access to advice and tools for building a robust business strategy; providing support for establishing key performance indicators; delivering specialist advice for digital transformation; incorporating environmental considerations into business strategies; and integrating financial advice to bolster management capabilities.
Among the companies featured in the study is The Sign Group, a bespoke signage and lighting manufacturer based in Leeds. The company benefited from the Strategic Growth Programme, which assisted in creating a sales strategy informed by insights across various departments. This collaboration resulted in a 12% increase in sales for their new NeonPlus® product. Financial Director Ian Hoole expressed the profound impact of external business support, stating, “It’s been an eye-opener how useful business support can be and I’m now firmly of the mind just ask to learn more!” The report indicates that the engagement with Oxford Innovation Advice has not only catalysed revenue growth for The Sign Group but also facilitated the creation of six new jobs through capital funding for infrastructure development.
The findings underscore the potential of establishing strong supplier relationships in the context of digital transformation, illustrating how effective supply chain digitisation can enhance revenue generation for SMEs. As firms navigate the complexities of digital transformation, the need for strategic partnerships and collaborative approaches becomes increasingly clear.
With such significant insights at hand, Oxford Innovation Advice will advocate for a more robust and tailored approach to support that addresses the documented needs of SMEs. Jane Galsworthy concluded, “We have delivered some excellent results across West Yorkshire, but we also know that companies in this area can deliver so much more with the right support.”
A detailed copy of the report is available online for those interested in exploring the findings further, contributing to the ongoing dialogue on enhancing productivity in the region.
Source: Noah Wire Services
