Could SME manufacturers be making more money than they are?
The Exact 2015 SME Cloud Barometer – an independent research study of almost 3,000 SME leaders across the UK, the US, France, Germany, the Netherlands and Belgium – has indicated that small and medium-sized manufacturers in the UK are missing out on new business opportunities.
Missing out on substantial additional revenue opportunities
The report highlights that manufacturing businesses in the UK are the worst at responding to new business opportunities. Underlining the UK falling behind, Exact found that 14% of UK manufacturing businesses failed to respond to all requests for proposals on time, compared to the global average of 11%.
This failure to respond to potential business opportunities equates to as much as nearly £25bn in additional revenue that UK manufacturers are theoretically missing out on.
The research suggests that the two key challenges leading to a failure to respond on time are:
- Finding skilled technical staff
- Ensuring material and processing costs and accurate
Is technology adoption the answer?
Chris Hill, Partner at Hawsons, commented: “Manufacturing businesses across the UK are facing some tough challenges. At a time where a strong pound and high energy prices are making it a struggle to compete on a global scale – highlighted by the ongoing crisis in British steel –manufacturers need to ensure they are efficient in dealing with new business opportunities.
“This research by Exact emphasises the potential importance of technology adoption…with 64% of UK manufacturers surveyed believing that technology holds the key to competing on a global landscape once again. Improving current time input efficiency is crucial to winning new business opportunities.”
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