Times were tough in UK manufacturing before the recession which only served to heap further problems on struggling companies. The impact of overseas competition on the UK caused many problems as goods could be manufactured in emerging economies for a fraction of the cost of the UK.
However, there are signs that manufacturing in the UK is still going strong and is reversing the trend to source goods from overseas. There are a number of reasons for this:
1. Emerging economies may be cheaper but the quality of their manufacturing has often not lived up to engineers expectations. Thus work sourced from overseas companies has often proved to be more expensive overall as rework and engineers time is taking into consideration. This is especially true in the laser cutting industry where organisations have often found that goods are not dimensionally correct or are cut to a poor finish.
2. As the value of the pound has dropped in recent times UK plc’s goods and services have become cheaper and thus more attractive to overseas buyers. This is happening more and more in Mainland European markets where the UK faces stiff competition from low cost European counterparts.
3. Countries such as China and Japan are starting to face the same issues as the UK did in the 1970′s, workers are demanding more money and rights as they see their employers reap the rewards of low cost labour. Consequently, their goods have become more expensive levelling the playing field for all global manufacturers.
4. It is easy to forget that the UK still leads the world in many specialist areas of manufacturing such as Formula One or medical devices. These companies are profitable by adding value to their offerings by ensuring they are technologically advanced and give customers what they need.
5. It is fair to say that the UK was slow to adopt lean manufacturing techniques that were adopted in the rest of the world. In addition, many UK companies failed to invest in new plant and machinery to ensure they remained competitive in the global marketplace. However, over recent times this has changed dramatically and the UK now has some of the most efficient manufacturing plants in the world.
A recent study by the BBC regarding the state of the UK manufacturing industry gave encouraging news highlighting companies that are holding their own in the manufacturing industry. The companies ranged from trainer manufacturers to child safety seat makers – This shows the depth and diversity of the UK economy.
So it would seem that there is some strngth in depth returning to the industrial sector. This can only be good news for the UK economy as a whole.
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