UK Manufacturing still strong

The latest Bank of England agents' report for December says that Manufacturing output for the domestic market continued to grow at a modest pace, but the growth rate had slowed since the summer. Growth was often driven by suppliers in the export supply chain, for instance in the automotive and aerospace industries, as well as those in the energy sector.
Capacity utilisation in the manufacturing sector had eased back slightly in recent months, reflecting slightly slower demand growth combined with improved supply potential due to past recruitment and investment. Overall, levels of spare capacity were reported to be around normal, although there was variation between sectors.

Perhaps most encouraging is the finding that manufacturers are finding opportunities to pass on some of their increased costs, so helping to maintain margins. Our contacts tell us that many smaller manufacturers continue to operate at full capacity.

The continuing reluctance of the major banks to lend (whatever their PR machines may say) is leading to more innovating thinking when it comes to addressing the issue of under capacity. There'll be more about this on our website Aconsulting in the New Year.

More companies planning acquisitions

A new report by Venture Finance says that 1 in 6 smaller companies in the Birmingham area are planning to buy another company, and of these 88% are planning to do it in 2012.

More than a quarter already have their own resources ready to make a purchase. These findings reflect our own experience with ever more business owners approaching us for acquisitions.

 It's easy to understand why. Well run companies are generating cash but can't get a sensible interest rate from their banks, and this has lead to a pent up demand for these companies to either invest in new assets to achieve organic growth or buy another company and with it both assets and a customer base.

Aconsulting offers an acquisition search facility for ambitious forward looking business owners.