Manufacturers in good shape
Aug 13 2010
UK manufacturers are full of confidences, says PwC
The manufacturing sector has emerged from the recession stronger than ever, claims a survey by PricewaterhouseCoopers (PwC).
According to the Big Four professional services firm, UK manufacturing businesses were not only able to improve working capital by up to 15 per cent in the recession, but also to improve gross margins by 1.5 per cent through cost saving initiatives.
Clive Penwarden, manufacturing partner at PwC, says: ‘Although UK manufacturing has just experienced one of its worst periods of decline and turmoil, the majority of the companies we spoke to used it as an opportunity to carry out radical restructuring, cost reduction, improve agility and flexibility, renegotiate contracts and pension liabilities.’
The findings confirm that manufacturing across Europe went into a sharp and deep recession in Q4 2008, with a rate of decline that took many by surprise. 2009 saw a further four quarters of declining output, with a total peak-to-trough decline in manufacturing output of 20 per cent.
For UK exporters, PwC states that the weak pound has provided a further much-needed lift. However, the Eurozone recovery is currently faltering and sterling has started to appreciate against the Euro, making the recovery appear more vulnerable than recent results would indicate.
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