Quality still wins

Mar 26 2008 by Peter McCusker, The Journal

MANUFACTURERS are still reaping the dividends of moving into higher value production despite the growth of low cost markets.

While competitive challenges posed by low cost regions, such as China and India, have not diminished, fewer UK manufacturers report an impact from price competition, according to a survey by manufacturers’ group EEF and accountants and business advisers BDO Stoy Hayward.

EEF Northern director Alan Hall said: “This survey paints a positive picture of how manufacturing companies have adapted to the challenge of the global environment.

“Instead of competing on price alone they are adopting a range of strategies to take advantage of emerging markets. While there are many other challenges on the horizon, manufacturers look well placed to rise to them.”

Partner and head of manufacturing at BDO Stoy Hayward Neill Rayland said: “The competition from emerging markets is likely to increase as these new economies move further up the value chain. We see an increasing challenge from China and India as they develop the low cost models that we have seen to date and begin to add innovation, research and increasing quality to the mix.”