The UK manufacturing industry is continuing to flourish, despite running the risk of being undercut by low-cost competitors, a new report has found.
The survey, published today by EEF, the industry body for engineering and manufacturing employers, shows that while the competitive challenges posed by low-cost regions such as China are not diminishing, fewer UK manufacturers are reporting a significant impact from price competition in key markets, compared with 2004.
UK manufacturers are accepting they are not always able to compete directly with low-cost competitors such as China so are finding other ways to entice customers, with niche offerings, increasing levels of innovation and improving service delivery just being a few of the tricks up their sleeves.
EEF’s chief economist Steve Radley said that this new model is symptomatic of the manufacturing industry’s ability to react to market changes. “Instead of competing on price alone they are adopting a range of strategies to take advantage of emerging markets.”
“While there are many other challenges on the horizon, manufacturers look well-placed to rise to them,” he continued.
© Crimson Business Ltd. 2008