News Article - 05 February 2010
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A recent survey from the Chartered Institute of Manufacturing and Supply suggests UK manufacturing activity in January grew at the fastest rate for 15 years. The Institute’s purchasing manager’s index rose to 56.7, up from 54.6 in December. Scores above 50 represent growth.

In addition, the employment index topped the 50 point level for the first time since April 2008, and new orders hit 60.4, the highest since January 2004. Both input and output prices grew at the fastest rate since the latter half of 2008.

The purchasing manager’s index is based on the responses of 600 purchasing managers to questions on subjects such as new orders, production levels and new staff appointments. The survey follows similar figures from the Chartered Institute of Manufacturing and Supply last month, which showed the UK manufacturing industry experienced its biggest growth period in years in December 2009.

Reactions to the figures have been mixed. Optimistic analysts believe they reveal a welcome upside to an industry that has in recent months struggled to remain profitable. More critical analysts suggest the figures are representative of an industry taking advantage of the weak pound to move into new markets. Others think the figures simply show increased confidence amongst manufacturing companies compared to recent periods where the effects of the economic downturn have been particularly negative.

UK manufacturing companies were hit particularly hard by the economic downturn. The purchasing manager’s index fell to 41 in September 2008, and many companies were forced to sell assets and make major staff cutbacks. The car industry in particular suffered severe drops in revenue, which was felt by many of the medium sized enterprises working in the supply chain.

Access is advising companies in the manufacturing sector how manufacturing software solutions can help ensure corporate growth strategies take advantage of favourable market conditions as they happen. Business software will enable organisations to streamline their processes, creating greater efficiency; by integrating their business systems, it will also provide increased visibility of information across the organisation. This will ensure that UK manufacturing companies are in the best competitive position as the economy moves out of the recession. For more information, please call 0845 345 3300.

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