The manufacturing Institute believes that financial problems caused by the credit crunch will benefit employers, as they will push to improve profit margins and become more efficient.
Peter Rogers, the practitioner team manager at the Manufacturing Institute, explained that companies are being forced to squeeze their profits because they can pass increased costs onto their customers.
However, he believes that manufacturing industry should be particularly resistant because it has been on the receiving end of “ferocious global competition” for some time now.
Because of this, the industry has had to exploit new and innovative “lean methodologies to transform products and processes and create efficient, robust businesses.”
Mr Rodgers says that other sectors, including banking, are increasingly recognising the “highly efficient” nature of the manufacturing industry and trying to emulate it.
The CBI/Experian Regional Trends Survey recently found that the volume of new orders in the manufacturing sector has been broadly unchanged nationally over the past three months.
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1 Comment
Unfortunately, becoming more efficient also means less workers and lower wages. I have to question as to whether this is the best way for companies to wise up at their employees expense.