Manufacturers must not talk themselves into recession: use the opportunity to rethink, says Frontstep

Commenting on the now official UK manufacturing recession – the fourth in just over a decade – with output recorded as falling for two consecutive quarters by the Office for National Statistics, he urges industry not to overreact. Noting that it should come as no surprise, bearing in mind the strong pound, increasing global competition and the fallout from other industry sectors – and that we’ve been here before – he says that scare-mongering and crisis reporting is not the way forward. He says: “The downturn in the IT industry, influenced by decreasing consumer demand for PCs and the collapse of the automotive sector, is impacting the rest of UK industry. Yet the food, drink, tobacco and chemical industries are reporting rising output.” And he adds: “Manufacturing is already showing signs of resurgence: in June, output was reported to have risen by 0.3%. And the fall in interest rates and low inflation may provide manufacturers some welcome relief. “Supporting a recovery are institutions such as The Bank of England and the Monetary Policy Committee, who are becoming more sympathetic to UK businesses and realise that they have control over the future of many manufacturing companies.” His view: “A recession can be used as a time to look at where improvements can be made and where strengths can be developed. It is a time for real due diligence and a look at long-term investment. Ultimately, the change has to come from each individual manufacturer. Overall, the UK has to make sure that it maintains business as usual.