Demand growing fast for small firms - graduate jobs

Graduates interested in entering the manufacturing sector will be heartened to find out that demand among small firms soared at its fastest rate for 16 years during the first quarter of 2011, according to new figures.

A report by business group the CBI found that the volume of domestic and export orders seen by small and medium-sized manufacturing companies grew at its fastest rate since April 1995.

According to the report, a balance of 16% of firms said domestic orders rose in the three months to April, while a balance of 23% reported an increase in export demand.

Findings revealed that production rose at a balance of 18% firms, up quarter-on-quarter from 13%, driven by the improvement in demand and stock rebuilding.

The jump in output led to 16% more firms increasing the number of staff they employed, compared with those who decreased it, the highest level since January 1995.

However, the report warned that production costs continued to increase rapidly, putting pressure on companies' profit margins, particularly for smaller firms.