Manufacturing could benefit from interest (From Bradford Telegraph and Argus)

Manufacturing could benefit from interest

11:10am Wednesday 8th June 2011 in Sandy Needham

Increasingly, people are talking about the importance and revival of manufacturing in the UK.

Companies of various sizes and sectors have said that there is a definite increase in interest for their products from other UK businesses.

A recent bank forecast predicted that there will be a resurgence of “Made in Britain” – not through a particular campaign, but driven by changing costs, cash flow and quality.

Some companies have imported goods at extremely good prices only to find that the quality is lower. That has meant having to commission UK-made replacements at a higher price because they cannot wait for another shipment.

One businessman worked out that when he took account of the cash tied up in stock being produced in China, in transit and sitting in his warehouse, it was cheaper to pay a higher price to a UK manufacturer.

Working capital remains a big issue for many businesses, so he won’t be the only one looking at alternatives.

Locally we have a higher percentage of manufacturers than most areas and West Yorkshire is the region’s strongest manufacturing area. It may not be easy to compete with overseas companies, but we have a good base on which to build.

I hope the Bradford & Airedale Manufacturing Alliance that we launched in January can be one way to enable manufacturers to work together and become beacons of success.