Tough times can help long-term productivity, group says
Aug 05 2008
Financial problems caused by the credit crunch will encourage producers to improve their profit margins and become more efficient, the Manufacturing Institute believes.
Peter Rogers, practitioner team manager at the Manufacturing Institute, explains many companies are having to squeeze their profits because they are unable to pass increased costs onto consumers.
However, he says, the manufacturing industry should be particularly resilient because it has had to resist 'ferocious global competition' for some time.
This has meant that it has had to exploit new and innovative 'lean methodologies to transform products and processes and create efficient, robust businesses'.
According to Rogers, other sectors - such as banking - are increasingly recognising the 'highly efficient' nature of the manufacturing industry and trying to emulate it.
The CBI/Experian Regional Trends Survey has found that the volume of new orders in the manufacturing sector has been broadly unchanged nationally over the past three months.
Peter Rogers, practitioner team manager at the Manufacturing Institute, explains many companies are having to squeeze their profits because they are unable to pass increased costs onto consumers.
However, he says, the manufacturing industry should be particularly resilient because it has had to resist 'ferocious global competition' for some time.
This has meant that it has had to exploit new and innovative 'lean methodologies to transform products and processes and create efficient, robust businesses'.
According to Rogers, other sectors - such as banking - are increasingly recognising the 'highly efficient' nature of the manufacturing industry and trying to emulate it.
The CBI/Experian Regional Trends Survey has found that the volume of new orders in the manufacturing sector has been broadly unchanged nationally over the past three months.
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