Manufacturers urged to boost buying power
1 min read
Manufacturers should join the acquisition trail to help boost output and increase their skills base into the bargain. That's the view of corporate law and manufacturing sector specialist Hayley Bevis (pictured) from law firm Thomas Eggar.
As manufacturing output increases, cash-rich manufacturers should consider taking steps to strengthen their commercial bargaining power, adds Bevis. This will also enable them to take advantage of the current economic instability of certain countries in the emerging markets.
"When it comes to our competitors, China's growth in the manufacturing sector during January and February 2011 for example, was not as prosperous as previous months. This was due, not least, to rising commodity prices and a hike in China's interest rates.
"Whilst the UK manufacturing train gathers momentum, it may now be a time for some UK companies to consider adding to their corporate profile. For cash-rich companies, there is a fantastic opportunity to look at some of their competitors and/or like-minded companies to see if an acquisition or two could further increase commercial bargaining power," she adds. "Perhaps adding a further division to the business could help strengthen the brand's offering in the wider market.
"A shortage in skilled workers within the manufacturing sector is also a real problem which could be partially solved as a result of acquiring a solid company or business with good, knowledgeable employees within the same sub-sector."
