SMEs suffer with skills shortages at 30-year high
Growth among smaller manufacturing firms has picked up in recent months, but skills shortages have hit a near 30-year high, a new report says.
A survey by the CBI found new orders for small and medium-sized (SME) companies increased at the fastest pace since 1995.
A further acceleration of output growth is expected in the next three months, the poll of over 330 firms showed.
The CBI said concerns over a shortage of skilled workers have "ramped up", with the number of SMEs citing skilled labour as likely to hit output, rising to its highest since 1989.
Alpesh Paleja, CBI principal economist, said: "Growth is going strong for SME manufacturers, who are reaping the benefits of a lower pound and buoyant global growth, as seen in record expectations for export orders growth.
"But margins are still under pressure, with cost pressures high, and firms expect to raise prices further to regain ground. Furthermore, concerns over skill shortages have rocketed, stoking capacity pressures further."