'Inspiration gap' holds back manufacturing

In its report – Inspired to Make It – more than 300 senior UK manufacturing executives put their company's 'inspiration rating' at 5.7 out of 10 in the study – a measure of how encouraged they feel about their business and industry's future prospects. Most recognise that dramatic change in the sector is needed for survival. Only 6% of respondents rated themselves as 'highly inspired' and around one in 10 said they were not inspired at all. There are green shoots however, with the average inspiration rating rising 0.65% in the past 18 months and 50% of respondents claiming they feel more inspired than they did back in 2011. A struggling survivor is how 37% termed the future of UK manufacturing, with another 34% saying it would become a niche player. In comparison only 26% see market leadership or global leadership on the cards in the future and around one in three respondents think it has already lost this mantle. Of those that do think the UK is still a leader, only 15% see this continuing. The sector's ability to change is viewed as critical to manufacturing's future success by 98% of respondents, with 62% saying the industry must be ready to adapt significantly or even completely. Innovation is part of future success too; 57% say that manufacturers must be highly innovative, compared to 6% who think innovation is of low importance. 72% of respondents said price competition was holding UK manufacturing back globally, this being the most common obstacle to success, followed by the Government's policy and strategy and then the attitude of people in the sector, cited by 50% and 48% respectively. Encouragingly, the sector is keen to lead the charge for change required to improve its fortunes; respondents most frequently cite manufacturing companies themselves, rather than customer demand, the government, the EU or industry bodies and lobbyists as the driving force behind improvement. "UK manufacturers definitely have a challenge on their hands and the Inspiration Gap they're feeling will need to be bridged if they are to achieve future success, carving out a strong position in the global market," said Steve Winder (pictured), vice president of manufacturing for Epicor.