Manufacturing
UK Manufacturing is experiencing a bit of resurgence with output and exports showing steady improvement. The sector is beginning to reap the benefits of the shift to ‘high value, high complexity' products, backed by a focus on improved efficiency and greater innovation.
We expect the sector to continue to capitalise on success in exporting to growth markets such as China, India and Asia as opportunities for strong growth in Europe remain patchy. While this picture is encouraging, we need to be concerned about the impact of Japan's devastating earthquake, instability in the Middle East and Africa, and financial issues within the European Union.
Pressure on costs will always be relentless, so manufacturing must continue to squeeze out inefficiencies, innovate and improve their employees' skills.
Growth will inevitably depend on the ability to change and adapt to new opportunities.
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