Mid-market manufacturers in the UK are contributing more to the economy than similar firms in France, Germany and Italy and represent the hidden engine to recovery, according to professional executive recruitment company Executives Online.
A study by Warwick Business School and GE Capital reports that firms with a turnover of less than £800 million, classified as mid-market, comprise just 1.67% of the total number of companies in the UK, but they create over one third of GDP. The UK mid-market also has more firms achieving sales growth of more than 10% in the last year than those in Germany, France and Italy.
Managing director and manufacturing practice leader at Executives Online Andrew Nicholas said: “Our manufacturing practice has worked with hundreds of mid-tier UK manufacturers, and we’re not surprised by the latest report. Large search firms often overlook mid-market companies when looking to place candidates, but we regularly work with companies of this size and they’re an extremely important part of our client base.
“We help them to find the right talent to keep their businesses successful. Despite their size they often punch well above their weight in terms of revenue contribution and job creation.
“The figures highlight the UK mid-market sector’s relative resilience compared with the other large European economies – these firms are driving GDP and are essential to future economic prosperity.”
Mr Nicholas said that the UK labour market is relatively flexible, which allows companies to adopt a range of people and production strategies in order to respond quickly to changing demand.
“An adaptable workforce is crucial to achieving success in providing solutions, exploiting niches and innovation – the cornerstone of competitiveness.”
He said that the manufacturers’ organisation EEF report Flexibility in the Modern Manufacturing Workplace, produced in partnership with Executives Online, showed that companies increasingly see their approach to people management and communication as a “core component” of their overall business strategy.
Executives Online is an executive recruitment company that employs a unique blend of online methods and personal, professional service to deliver targeted and cost-effective recruitment for clients. Its executive recruitment service delivers senior directors and managers for interim and permanent roles, selected for their specific experience and skills, in virtually every functional and professional discipline. At the heart of Executives Online’s service is its Global Talent Bank, a growing and constantly refreshed network of over 100,000 candidates. These individuals represent a diverse and highly experienced resource for companies facing an urgent need for talent.