Turn in fortune for manufacturers as sales hit all time high

7th Nov 2007

Earlier this month, the South West MAS celebrated the news that the UK manufacturing industry had hit an all time high, recording its strongest sales quarter in almost two decades.

The British Chamber of Commerce net sales index showed that 36 per cent more manufacturers experienced a rise in domestic sales than a fall during the third quarter (July to September), creating a record for the index which began in 1989.

Arthur Richardson, director of the South West MAS, commented on the growth in sales: “It has been over a decade since the movement to offshore manufacturing began with companies attracted by the prospect of high volume production at low cost. Undeniably, companies in the South West have lost out to this trend. But things have come full circle, with these low wage rate locations starting to face the flip side of high growth, such as rising inflation, and decision makers becoming disillusioned by unexpected additional costs, communication and quality issues which can accompany off-shoring.

“While this transition has been taking place, manufacturers in the UK have not stood still. By embracing lean manufacturing, pushing up productivity and investing in technology and specialist skills, the industry in the UK is carving out its own path.

“The uptake in sales reported by the BCC is reflective of the changing face of manufacturing in the UK and consequent decisions to bring work back to home shores to take advantage of our expertise in high variety, bespoke manufacturing which in its nature is highly flexible – a facet which mass producers in the Far East have struggled to replicate.”

Arthur also believes the growth of other sectors in the UK, such aerospace, automotive, food and drink and construction, where there is a need for skilled, niche manufacturing has been fundamental in fuelling sales.

“Automated processes, streamlined operations, high levels of customer service, innovation excellence and an investment in upskilling are making small, niche manufacturers in the UK the number one choice for a number of thriving industries which also have a desire to support British operators. The time is now for an industry which has certainly gone through the mill in recent years but is on the brink of once again becoming a global force to be reckoned with.”

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