The confidence of manufacturing firms has been hit by poor weather at the end of 2010 and a rise in costs.
This is according to research from the Federation of Small Businesses (FSB) as it publishes its latest Voice of Small Business Index.
Heavy snowfall brought much of Britain to a standstill over the festive period, which meant that some companies dealing in bulk materials will have been unable to take delivery of resources to fill their hoppers.
The severe winter weather certainly had a knock-on effect for small business confidence, which fell by 13 per cent in the final quarter of the year.
Rising inflation and the 2.5 per cent hike in VAT has also affected small companies' confidence for 2011, the research shows.
"A number of pressures on small businesses are beginning to come to a head, such as the increase in VAT and fuel duty, placing more strain on cash-flow," said FSB national chairman John Walker.
However, a separate report out this week paints a brighter picture for manufacturing companies.
The British Chambers of Commerce found that the manufacturing sector is the major driving force behind the economic recovery.
Typical Guttridge equipment used in the manufacturing industry includes; conveyors – screw conveyors – chain conveyors – belt conveyors
