Signs of a turnaround, albeit a fragile one, among SME manufacturers have come out of the MYOB Business Monitor report for September.

 

The national survey, conducted quarterly, of owners and directors found that 21 per cent of all SMEs reported increased revenue, though this figure was higher among manufacturing and wholesale businesses at 29 per cent.

 

A revenue decline was reported by 32 per cent of those in the sector, far better than the 43 per cent in the results for SMEs overall.

Optimism among SME manufacturing and wholesale businesses was also slightly higher than other SMEs, with 35 per cent predicting revenue increases in the next year compared to 32 per cent overall.

Tim Reed, the CEO of MYOB, said that manufacturers had struggled with issues including around currency and international trade in recent years, but there were signs of a turnaround in the sector.

“It’s extremely pleasing, therefore, to see the sector turning a corner in this latest Business Monitor survey – demonstrating both the resilience and the productivity gains seen in the sector,” he said in a statement.

The growth was fragile though, said Reed.

 

There were also five areas cited where manufacturing/wholesale businesses were feeling more pressure than other SMEs. These were:

1. Attracting new customers – 47% (32% for all SMEs)

2. Price margins – 39% (28% for all SMEs)

3. Fuel prices – 39% (33% for all SMEs)

4. Timing of customer payments – 38% (27% for all SMEs)

5. Competitive activity – 37% (26% for all SMEs)

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Source: Manufacturers Monthly by Brent Balinski

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