SMALL to medium sized manufacturers in the West Midlands are set to embark on a major investment drive to meet expected new demand as the economy recovers. The latest Manufacturing Advisory Service Barometer’s special focus survey shows 88 per cent of respondents are planning to invest in capital equipment over the next twelve months, with companies looking to spend £165,000 on average. With almost 10,000 firms making up the West Midlands SME manufacturing community, this could equate to hundreds of £millions of fresh industry investment between now and 2015.

Pershore-based Freddy Products, which specialises in industrial vacuums, coolant filtration and coolant recycling machines, was one of the companies questioned in the latest barometer survey. The company from Kempton Road reported it has just had the best six months in its 52-year history following significant demand from the Middle East, Australia, USA, and Asia.

Simon Hanmer, managing director, explained: "The growth has predominantly come from a combination of exploring the GCC countries, new HSE legislation and companies just wanting to achieve a ‘greener profile’. What this means is that we have been able to increase sales by 23 per cent and taken on two new members of staff, increasing the workforce to 16 people. We will be spending a significant sum of money on new machinery and there is a potential move to a larger site within Worcestershire. "

Lorraine Holmes, area director for MAS, said: "There is a definite feel good factor around West Midlands manufacturing at the moment and these latest figures reinforce positive reports from the Society of Motor Manufacturers and Traders together with encouraging Purchasing Managers’ Index data. Investment is crucial if we are going to take advantage of predicted growth in markets such as offshore wind, renewables and low carbon vehicles. Importantly, 10% of smaller businesses are looking to spend more than £500,000. This is a significant figure and proves that SMEs are prepared to invest ‘big’ in order to take advantage of opportunities presented by the upturn. "