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Growth at the Expense of Margins Impacts on Competitiveness
01 Jun 2004
Growth in manufacturing output is predicted by both the EEF, the manufacturer's organisation, and the CBI, with engineering expected to grow by 1.8% this year and 4.4% in 2005. However, for many businesses, such growth will only be achieved at the expense of margins, with a resultant decrease in the amount reinvested says Mark Eaton, Director of the MAS (South East & London) for EEF South.
Investment in new processes and new technology is an area where the UK already lags behind most of the industrialised west and which impacts on competitiveness.
Growth in margins can be achieved through improving productivity, getting more value from your products or through reducing expenditure. The biggest opportunities exist in the areas of productivity improvements and extracting value from products. The latter is concerned with a wide range of activities from assessing your business's competences to see if you can enter new markets to the development of your business's brand and is something where there is almost limitless opportunities but generally a lack of in-house skills.
For further information on how to extract more value from your existing products, or to increase your margins through productivity contact the Manufacturing Advisory Service in the South East 0845-609-2121 or email www.bema.co.uk info@mas-se. org. uk, where the team can advise you, regardless of where you are located.
To find out more about the national MAS initiative visit www.mas.dti.gov.uk.
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