LONDON MANUFACTURERS LOOK TO PROSPEROUS NEW YEAR

Manufacturers in London are riding a business growth curve that looks set to continue through to 2008.

Research conducted by EEF South, the regional manufacturers’ organisation, points to strong performance among local companies, including those in the capital, in the key areas of output and new orders…with predictions of even better to come.

The EEF South business trends survey shows that 77 percent of manufacturers are seeing steady or improving total output, with an even higher proportion anticipating further growth over the next three months. Seven in 10 report stable or improving new orders – and 91 percent expect the picture to remain positive through the rest of the year.

“These new orders are coming from both domestic and overseas markets, which demonstrates the ability of our manufacturers to compete effectively across the world with the right products and associated services,” says EEF South Chief Executive David Seall.

“This is happening despite significant pressure on prices and margins – indeed there is an underlying confidence that is reflected both in increased capital expenditure and in the recruitment of additional people.”

The Manufacturing Advisory Service in London believes that this survey confirms that many companies are improving their competitive position as a result of adopting the latest lean manufacturing techniques and developing innovative new products.

Comments London MAS Principal Specialist Colin Allaway: “We know that London companies find it very difficult to compete on low value work, but they are clearly succeeding through higher value new product development and better workplace productivity – these are areas where our manufacturers can increasingly gain commercial advantage.”

www.eef.org.uk/south

www.mas-london.co.uk