Growth predications among Welsh manufacturing companies have fallen markedly since a year ago, according to the latest annual survey from leading professional advisors Broomfield & Alexander, which has a base in Newport.

Only 66 per cent of firms which responded anticipate growth of 10+ per cent over the next 12 months, compared with 90 per cent in 2014.

The vast majority - 76 per cent - also remain concerned about their ability to recruit suitably qualified staff, with 38 per cent saying they would like to see an expansion of skills training in schools and colleges.

The picture of the health of small and medium-size manufacturers in Wales emerges in the research undertaken by MHA, the UK-wide group of accountancy and business advisory firms, of which Broomfield & Alexander is a member.

Companies in Wales responding to the survey covered a broad range of sizes and industry sectors including aerospace, automotive, construction, electrical and electronics, and oil and gas, with turnovers ranging from £1m to more than £100m.

The survey, supported by the manufacturing team at Lloyds Bank Commercial Banking, also found that:

• 73 per cent of manufacturing SMEs in Wales now export - with companies’ main competitors located in the UK and Europe, the focus is on areas where there is less competition

• 79 per cent reported an intention to invest in R&D, and unlike elsewhere in the UK, take-up of R&D tax credits in Wales was good. And 77 per cent of those who claimed credits were successful

• 73 per cent anticipated an increase in production costs over the next 12 months

• 63 per cent have accessed government or grant funding in the last 12 months – including the Wales Economic Growth Fund, Smart Cymru and Jobs Growth Wales – and 57 per cent said they were aware of the availability of Government grants should they wish to apply for them

• 60 per cent said they thought staff numbers would rise in the coming year, with 57 per cent expecting to take on between one and six apprentices or trainees – both figures slightly ahead of the UK average.

• 89 per cent said they would vote to remain a member of the EU in the upcoming referendum, with the majority, 67 per cent, believing that negotiated terms would best benefit business and the economy

Broomfield & Alexander managing director Ian Thomas said the survey lifted the lid on the challenges facing a sector whose struggle to grow was being hampered in no small measure by problems recruiting the skilled people they needed.

“While there are some hopeful signs for the future, such as the increase in STEM students at A Level and employers playing a more pro-active role in schools, signposting engineering as a ‘go to’ career in secondary schools just doesn’t appear to happen,” he said.

“Improving careers advice and skills training within the education system needs to become a major focus of debate if Wales is to attract the next generation into manufacturing and engineering.”