Manufacturers bullish about the future: Report

According to the new 'Manufacturers: Ready for the Recovery?' study by consultancy McKinney Rogers and researchers Ipsos MORI, over a fifth of UK respondents aim to acquire competitors outright over the next 18 months. UK respondents are more likely to take market share from competitors (60% UK compared with 34% for the US), to develop new markets (54% UK compared with 32% for the US) and acquire new customers (54% compared with 28% for the US). Conversely, the US is more likely to consider acquiring businesses in the coming months, with 82% of US respondents agreeing to some extent to considering this, compared with 60% in the UK. The report, which interviewed senior leadership team members in 100 different large and mid-sized manufacturing firms, half in the UK and the same in the US, reveals that many are expecting their business to be in a much stronger position after the recession (80% UK, 82% US), but have made different moves to combat the recession and have different intentions to succeed in the recovery. Other highlights include: Both UK and US executives believe their companies are well placed to emerge from the recession (90% UK agree, 92% US) Few firms made redundancies as an initial reaction to the recession (24% UK, 16% US). The US was more likely to take the further step of redundancies (38% US, 24% UK) UK redundancies were most common in operational functions (78% UK, 71% US). US respondents said their redundancies had focussed on core parts of the business (86% US) more frequently than the UK (48% UK) Many firms expect there will be exciting acquisition opportunities in the sector during the next 18 months (72% UK, 88% US). Many will be actively considering acquisitions (60% UK, 82%US) McKinney Rogers CEO Damian McKinney said many businesses in both Britain and the US were expecting their markets to have been dramatically changed by the recession. "The relative smaller size of the UK's manufacturing firms compared to the giants of China, the US and elsewhere has made them more able to adapt quickly to the changing environment," he went on. "Many UK manufacturers have generally taken strong, sensible measures and are surviving and even thriving. That said, achieving such growth is challenging and one of the biggest will be to ensure their strategic plans are effectively and quickly implemented to capitalise on the opportunities they have identified. Although these senior executives are bullish about their prospects, our research identified many areas that will cause them problems when they come to implement their plans. Concerns at disagreements in the senior team, skills of operational managers and communications to the 'front line' suggest the senior team have a long way to go before they really are ready for the recovery."