Price rises force 'radical' changes at UK factories
Monday 22 August 2011
British manufacturers have been forced to make "radical" changes to how they work as soaring materials costs put them under more pressure.
A survey released today by manufacturers' organisation EEF and Royal Bank of Scotland found that almost half of the companies it quizzed had overhauled their products or processes in response to rising prices. Lee Hopley, the EEF chief economist, said the statistics were a "stark illustration of the impact of high material costs which manufacturers have been grappling with throughout the recovery."
Nearly two-third of companies have looked to different sourcing options to keep a lid on costs and 40 per cent have substituted some materials for cheaper alternatives. The pressure has also seen 40 per cent of firms look to renegotiate existing contracts with their customers.
Reflecting this, almost half of manufacturers cite managing input prices as a growth challenge, up from a third a year ago.
Peter Russell, head of manufacturing at RBS, said companies were mindful of further rises in input costs.
"Looking out to the next 12 months, the direction of commodity prices is very uncertain," he said. "But most manufacturers are building further price increases into their business plans," the RBS executive added.
food + drinkMichelin-starred Tom Sellers on being this year's hottest property
tvParents (and kids) rejoice! A new wave of fantastic family entertainment is here
booksGeese, gorillas, grandads... and growing up
food + drinkHow one grocery e-tailer is gearing up for the Yuletide rush
food + drink
travelFor broadcaster Mishal Husain, a long-haul Club Med holiday was a chance for her family to explore its sense of 'zen' and 'animation'
Nelson Mandela: 11 inspirational quotes to live your life by
Queen to miss Nelson Mandela funeral over security and long-haul flight concerns
'Never a good time to increase MPs' pay': Jack Straw defends politicians' 11% pay rise in face of public outrage
The 'terrorist' and the Tories: What did Nelson Mandela really think of Margaret Thatcher?
Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- 1 Hundreds arrested as Canadian police smash worldwide paedophile ring
- 2 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 3 Why Barcelona chose Everton to educate their latest prodigy
- 4 Mass murder in the Middle East is funded by our friends the Saudis
- 5 Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- < Previous
- Next >
iJobs Money & Business
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...
£50000 - £60000 per annum + benefits + bonus: Harrington Starr: Business Analy...