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Investment in Britain's car industry and wider confidence over the economic outlook have boosted optimism among Britain's small manufacturers, which could create tens of thousands of new jobs.
A survey of more than 900 companies across England has found that they predict a 64% rise in collective turnover and see staffing levels increasing almost a third over the next four years.
The government-funded Manufacturing Advisory Service said its latest barometer of small manufacturers found a majority were focusing on increasing sales at home rather than looking to export for growth. More than two-thirds saw concentrating on the domestic markets to be most fruitful.
The survey echoed other recent reports in pinpointing skills shortages as the biggest challenge to growth. But manufacturers were upbeat about the near-term outlook, with sales, future growth, jobs and investment measures up across the board.
"There is significant confidence in the domestic marketplace at the moment, a further signal that the recovery has taken hold," said MAS head, Steven Barr.
"We've seen unrivalled investment in the UK automotive industry and that is cascading down the supply chain and creating new opportunities."
MAS said small manufacturers' hiring intentions could translate into "tens of thousands of new jobs". More than half of firms – 55% – were looking to recruit and create new jobs: a new record for the survey.
It coincides with a separate report, out today, which suggests job creation in manufacturing is at a six-year high, driven by manufacturing hubs in the West and East Midlands.
Recruitment firm ManpowerGroup said that across all sectors, however, employers were scaling back their hiring plans for the fourth quarter of this year.
"The UK jobs market has experienced an unprecedented boom so far in 2014, with job creation peaking at its highest level since records began in 1971. This raises questions about whether the phenomenal level of job creation we've seen can be sustained. The fourth quarter's outlook suggests it can't, with a two point fall in hiring intentions – the sharpest dip we've seen in three years," said James Hick, managing director of ManpowerGroup Solutions.
"While the UK economy is in robust health, there are issues that may be making employers more cautious. The Eurozone's recovery is stalling, and the UK faces a period of political uncertainty with the Scottish independence referendum, a general election and a potential vote on EU membership all on the horizon."
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