EU partnership vital for manufacturing

Conducted for the business advisory firm Deloitte by Works Management, the first survey, 'Made in the UK', reveals that 84% of UK manufacturers regard the EU as their principle export market, followed by North America (44%) and Asia, excluding China (30%). Ninety-four per cent (94%) of respondents said they exported at least some of their manufactured output, with more than a third (35%) exporting over half of their production. Most saw their biggest challenge as achieving the efficiency necessary to be able to compete internationally on price. The findings illustrate that the comparative weakness of sterling has not yet boosted exports as much as may have been anticipated with fewer than one in three manufacturers (30%) saying their exports had increased over the past 12 months. However, 55% said they expected export figures to increase over the next two years. David Raistrick (pictured), UK manufacturing industry leader at Deloitte, commented: "I anticipate that as the EU and US pull out of recession, their demand will increase and the effect of the low value of sterling will drive our export market in overall terms." When questioned on imports, the overwhelming majority (85%) said they bought materials or components from within the EU. Less than half that number (41%) sourced Chinese parts. The survey also looked at UK manufacturers' attitudes to emerging economies, finding that 35% of manufacturers were outsourcing production to a lower cost country. Beyond the export arena, only nine per cent of those surveyed were critical of their banks and, most positively, the overwhelming majority confirmed their commitment to maintaining or restoring staff numbers next year. The full report together with a podcast of David Raistrick, Professor David Bailey and Ken Hurst debating the findings is available at www.deloitte.co.uk/pointofview