Manufacturing key to Britain’s economic recovery

News Article - 30 April 2010
Category: Business

A recent report by The Institution of Mechanical Engineers and The ERA Foundation has stressed the importance of the UK manufacturing industry to a speedy economic recovery for the whole country.

Re-industrialising the UK, the report argues, should be a priority for the next government to ensure Britain can reduce debt, cut back borrowing and emerge in a more stable economic condition. In addition, the Government must show a greater commitment to manufacturing as a whole, and develop a more open minded procurement strategy to increase the range and size of contracts awarded.

UK manufacturers have suffered from unrealistic barriers to exports since 1998. At the time, changes to exchange rates encouraged imports yet resulted in the rapid decline in the exports of manufactured goods. The problem of finding a way to effectively export goods has been aggravated by a number of factors, including skills shortages, investment shortfalls, escalating energy costs and poor government procurement.

These issues have resulted in a decline of manufacturing as a percentage of GDP from 20% to 14% over the past 10 years. The UK has sold assets and associated debt worth £700bn in the last decade to make up the manufacturing deficit. Unless measures are taken soon, this deficit may widen and put further strain on the British economy.

The impetus behind the report was the Future of Marketing Summit, held in London on March 4^th. Five key areas were identified as in need of immediate attention if the manufacturing industry is to stage a comeback: cultural change, simplified incentives, political consensus, growing skills and energy costs. These are addressed in the published report.

Whilst government intervention is certainly essential to re-industrialising the UK, manufacturing companies must ensure internal operations are as efficient as possible to drive the behavioural change needed to grow and address export needs on an international level. Access business software solutions offer manufacturing companies a valuable insight into everyday operations, allowing managers to make solid decisions on the back of sound financial data.

Stock forecasting, for example, allows the business to run 'what-if' scenarios and more efficiently time new sales orders, purchase orders and supplier lead times, providing the intelligence required for smoother, more effective operations.

For more information, please call Access on 0845 345 3300.

Article keywords: Stock forcasting, The Institution of Mechanical Engineers, ERA Foundation, economic recovery

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