UK's Strong Currency Squeezing Small Manufacturers

Jan. 13, 2005
Smaller British manufacturers are feeling the pinch of the pound sterling's strength against the euro, according to a survey released this week by the Confederation of British Industry (CBI) and Pannell Kerr Forster. "There is a lot of talk that ...

Smaller British manufacturers are feeling the pinch of the pound sterling's strength against the euro, according to a survey released this week by the Confederation of British Industry (CBI) and Pannell Kerr Forster. "There is a lot of talk that manufacturers are learning to live with the current strength of sterling, but the exchange rate against the euro is still a major problem for many companies," says Colin Perry, who chairs the CBI's council on small and medium-sized enterprises (SMEs). "Exports to Europe are only possible if profit margins are cut to the bone." The survey results come amid a continuing and divisive debate over whether the United Kingdom should join the so-called euro zone. The quarterly survey of 841 UK manufacturers found a rising level of confidence as well as stronger orders and output, but it also found that employment and prices are still falling. Employment in manufacturing has been declining for the last two years. All the same, 26% of manufacturers said they were more confident about the future than they were four months ago. The new survey's results were the most positive in three years. "I hope this is not just millennium euphoria that has led SME manufacturers to be positively optimistic about the future," says John Alexander, a partner at Pannell Kerr Forster. "All other trends are downward, or at best flat. Concerns about export prospects continue to dominate the sector. But at least the negative trends are becoming less negative, which is a statistician's way of saying that things are bottoming out."

Popular Sponsored Recommendations

The Best Strategies to Improve Engineering and Shift Towards a Profitable Future

June 26, 2023
To gain clearer insight into this shift for small and mid-sized companies, Lifecycle Insights conducted the 2022 Engineering Strategies for Small and Mid-Sized Companies Study...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!