Whilst the recent economic downturn hit the service industries hard, for manufacturers here in the UK, recessionary pressures were hardly a new phenomenon. The rise of the emerging economies – rich in both labour and resource – combined with a strong pound, has seen manufacturing output in decline for many years.
Fortunately, the UK has seen positive trends from manufacturing. The manufacturing industry is growing and with it the industry is employing over 2.5 million staff in the UK alone and continues to see growth which suggests demand for British goods is still strong. EEF also states that exports are a major source of growth for many manufacturers; over 90% of EEF members are exporters with nearly 40% exporting more than half of their turnover.
Although a scary thought at first,globalisation has created significant opportunities for British manufacturing, and UK companies definitely are rising to the challenge. Growth in Asia and other emerging markets are providing significant new export potential; offsetting the more disappointing performance in some parts of the euro area. In China in 2012 saw sales of UK automobiles increase up by 60% and this figure continues to grow through 2014.
The UK boasts many successful, highly innovative and well-managed manufacturing companies. A big question is how can British manufacturers position themselves not only to capitalise on domestic market opportunity, but look ahead to priming operations to take advantage of demand in the emerging economies? Whether through sourcing raw material, shifting production plants or joining the growing trend toward the trade of British manufactured goods in the eastern economies – what can companies do to ensure a readiness for business on a global scale?
Find out how one of our long standing customers achieved this – read the SPP Pumps case study