The recent Manufacturing Growth Report 2024 by our partner Made in Group sheds light on the remarkable growth and optimistic outlook of industrial businesses in the Midlands and Yorkshire. At E3 Recruitment, we resonate with the insights presented in the report, as they align closely with our daily interactions with the sector.
Key Insights:
- In the next 12 months, 36% of businesses expect high growth (>20%), while 39% anticipate moderate growth (20%).
- Strategies for managing business costs in 2024 include reshoring production (12%), subcontracting/outsourcing (52%), establishing production in lower-cost locations (18%), and reducing headcount (3%).
- Over the past year, 27% of businesses experienced high growth (>20%), with another 27% reporting moderate growth (20%).
- Most respondents in the survey held director-level positions (83%), with smaller percentages in marketing (5%), purchasing (1%), and sales management (11%) roles.
According to the report, industrial businesses in the Midlands and Yorkshire have showcased remarkable growth, with three in four companies expecting double-digit growth over the next 12 months. Additionally, 63% of manufacturers conduct regular formal risk assessments to proactively manage challenges, while one in three have established succession plans with clear processes in place.
The report underscores the sector's ability to innovate and overcome challenges, such as supply chain disruptions and political uncertainties, to achieve significant growth. This resilience and optimism displayed by manufacturers highlight their capacity to navigate uncertainties and drive future growth, qualities that we actively seek in the candidates we recruit for our clients.
Succession planning is a critical aspect for manufacturing companies looking to sustain their growth trajectory.
James Soden, Director of E3 Recruitment, emphasises our dedication to supporting manufacturing companies in navigating challenges and driving growth: “We understand the importance of helping manufacturing companies identify and develop talent that can navigate uncertainties and drive future growth. By partnering with businesses to address succession planning and talent acquisition strategies, we contribute to their long-term success, and urge manufacturers to start developing succession plans.”
Geopolitical events and elections have a significant impact on the manufacturing sector, emphasising the need for strategic workforce planning. The report's spotlight on these factors underscores the importance of aligning talent strategies with the ever-changing industry landscape. At E3 Recruitment, we provide tailored recruitment solutions that meet the evolving needs of our clients, enabling them to build resilient teams capable of thriving in changing environments.
Our Key Recommendations:
- Establish talent pipelines to proactively identify and nurture potential candidates for critical positions within the organisation.
- Utilise mentoring and coaching programs to prepare successors and transfer knowledge internally, fostering a culture of continuous development.
- Adopt a dual approach that combines internal talent growth with external recruitment for critical leadership positions, ensuring a balance of industry knowledge and specialised expertise.
- Implement formalised leadership development programs to groom future leaders and ensure a smooth transition in leadership roles.
- Organise succession planning workshops and training sessions to educate employees on the importance of leadership continuity and succession planning.
- Evaluate and review legal structures within the organisation to facilitate effective succession planning and ensure a seamless transition of leadership.
- Recognise the need for structured approaches to leadership continuity and succession planning, even in the face of talent development challenges.
The Manufacturing Growth Report 2024 from Made in Group highlights the resilience, adaptability, and growth potential of industrial businesses in the Midlands and Yorkshire. By embracing innovation, strategic planning, and talent development, manufacturers can position themselves for sustained success in an increasingly competitive market.