Manufacturers across the South West are being hit hard by the coronavirus pandemic with 87 per cent of SMEs reporting a significant decrease in production volumes.

Initial findings of the Manufacturing Barometer, which surveys firms across England, reveals a stark picture of how the virus is affecting industrial confidence.

Almost nine out of 10 respondents to the research conducted by South West Manufacturing Advisory Service and the Manufacturing Growth Programme expect sales to drop over the next six months.

And more than half predict the need to cut staff - despite the Government's furloughing scheme.

There also appears to be continued confusion over support available to business.

Nearly three-quarters of firms questioned either do not think the assistance on offer is sufficient or are unsure of the help they can access.

Almost 90 per cent said financial support was their most urgent need, followed by overcoming supply chain disruption and detailed advice on how to cope with the pandemic.

SWMAS managing director Simon Howes, pictured, said: "COVID-19 is already having a significant impact on the majority of SME manufacturers surveyed and many of those who have yet to experience a change are expecting this global health and economic crisis to affect their business over the coming weeks and months.

"Unlike many sectors, our manufacturing industry cannot be carried out remotely as it relies on physical interaction with machinery and parts.

"Restrictions and lockdown measures in the UK mean capacity is reduced, and this is reflected in four-fifths of companies seeing a reduction in staff attendance."

He continued: "Companies who may still be able to produce goods are still reliant on their supply chains and a massive 80 per cent of businesses questioned are either struggling to source materials or have seen reduced orders from customers since the COVID-19 crisis began.

"Just over half of respondents said restrictions on exporting and importing are having an impact on their operations, so whether they trade nationally or worldwide, many small and medium-sized UK manufacturers are uncertain of what the future holds.

"Eight-six per cent confirmed they will need financial assistance, yet there is a great deal of uncertainty over the eligibility criteria for business loans and how quickly these can be accessed, if at all.

"Many businesses are also concerned about how paying furloughed staff will affect their cash flow in the short term before government support becomes available.

"While the Government's initial support package was widely welcomed by industry, there is a need to provide deeper advice and support for manufacturers to help them to adapt and to survive."

Phil Ion, managing director of Quedgeley-based CORE Lighting who supply to the entertainment sector, is concerned about future orders with pubs, clubs and restaurants have closed.

He said: "The sectors we supply have all been asked to close as a result of COVID-19, so we are receiving no orders or income.

"Although we are trying to find a possible parallel market, this is not easy in these uncertain times and we will need to rely on government support to get us through until the lockdown is lifted and business returns to some level of normality."

He continued: "The problem facing many businesses is that they have no idea when things will return to normal.

"We are hopeful that financial support from the government will apply to us, though this hasn't been 100 per cent clear.

"It's also hard to plan when we have no idea what will happen at the end of this initial three-month period and if the crisis is still hugely affecting the entertainment sector."

The Manufacturing Barometer, the largest survey of its type in England, shows that finding routes to new markets is one way for manufacturers to keep their business ticking over when their existing customer base is limited.

The 13 per cent who said production levels have increased are supplying into fields experiencing a higher than normal demand as a result of COVID-19, highlighting an opportunity for other manufacturers to support their supply chains.

Manufacturing Growth Programme managing director Martin Coates said: "One in five manufacturers have answered the Government's urgent call for additional NHS equipment, but many of those questioned are still unsure whether or not their offer of help will be taken up.

"As the list of products necessary to help fight COVID-19 continues to grow, SMEs should be exploring this in further detail and to find other possible opportunities for their business."

Your company can take part in the Manufacturing Barometer until Friday, April 17 at survey.zohopublic.eu/zs/00hdIL