2012: a year for optimism

Yet qualified optimism remains – both in the sector itself and the wider business community. Amid the eurozone crisis, manufacturers selling to expanding and growing global markets are continuing to do very well. Even as oscillating official output and PMI figures create headlines, we have seen new investment (LDC's £200m commitment to manufacturers in the West Midlands), job creation (at Toyota's Derbyshire factory and the new JLR plant at i54) and government-backed support as enterprise zones are announced. So how can other manufacturers turn this optimism into reality? Firstly, firms must seek out new market opportunities, especially in the emerging economies of Brazil, Russia, India and China. These and other emerging economies are continuing to grow and are becoming significant export markets (and therefore also investors) in their own right. Deloitte's last CFO survey revealed that optimism is higher in businesses that derive more than 75% of their revenue from overseas markets. In contrast, those that rely on revenue from the UK are focused more on cost reduction. Manufacturers need to seek advice to help evaluate potential opportunities, negotiate unfamiliar bureaucracy and differing legislation and tax systems, and devise a suitable strategy. Manufacturers can also strengthen their businesses by making the most out of current and pending tax legislation – including the 'Patent Box' tax regime due to be introduced in 2013. For manufacturers large and small there are numerous grants and incentives available in the UK, but it can be difficult to identify the best scheme, its key drivers and the chance of success. There are ways to ensure greater resilience and to develop your business, even in this climate. The opportunity is there for those that can adapt quickly and find the more buoyant niche markets.