INDUSTRY NEWS www.industrialtechnology.co.uk Manufacturers resilient despite the tougher climate, says EEF Output and order balances remain firm, with export orders picking up despite the weak dollar. Confidence remains strong, although optimism is down on the previous quarter Manufacturers continue to record healthy growth and remain upbeat about the future despite tougher trading conditions, according to a leading barometer of the sector published by EEF, the manufacturers’ organisation and Grant Thornton. Furthermore, EEF also released figures showing that the recent credit crunch has had a relatively limited impact so far on manufacturers, with only a small percentage of companies seeing a significant increase in the cost of finance. Commenting, EEF chief economist Steve Radley said: “Despite rising oil prices, a falling dollar and a more uncertain economic outlook, manufacturers recorded another quarter of healthy growth and are looking to the future with a degree of confidence. Investment intentions also remain strong, reflecting their continuing commitment to drive up productivity. Though the economic outlook remains unclear, manufacturers’ greater resilience should mean that growth continues into <strong>2008</strong>.” Order and output balances were both in positive territory for the ninth consecutive quarter. In contrast to the last quarter, export orders to both EU and non EU countries picked up whilst domestic orders edged down slightly. However, the balance of firms reporting falling margins on export sales indicate the weaker dollar is beginning to take its toll. The decline was most marked in those sectors that are particularly exposed to movements in the dollar such as electronics and aerospace. All sectors reported positive output balances over the past three months with motor vehicles and electrical equipment reporting the strongest balances for the second quarter running. With the exception of basic metals, balances on order volumes were a touch weaker, although for most sectors they remained in double digits. Once again all regions reported positive balances on output. Though weaker than the unusually high figure recorded in the previous quarter, investment intentions remained firm and above their long-term average. The continued commitment to raising investment reflects improved company balance sheets, confidence about future prospects and the need to keep raising productivity if manufacturing is to remain competitive. Separately, the survey also asked about the impact of the current turbulence in financial markets on company finance, only 2.4% of the 577 companies who responded to this particular issue said that they had seen a significant increase in the cost of finance from Banks or other financial providers. Almost 40% of companies said there had been no change. Cleaning revealed as main cause of production downtime across industry Time taken to clean machinery has been revealed as the main cause of downtime within UK production, with over half (52%) of companies polled citing this as their main frustration, according to a poll by peristaltic pump manufacturer, Watson-Marlow Bredel. With machinery downtime representing one of the greatest losses in production and revenue, it’s important for manufacturers to be able to look for ways to minimise the time that equipment is out of use. Along with cleaning, 24% of companies cited faulty machinery as a main cause of production downtime and 13% claimed human error. Encouragingly, only 7% claimed to have issues with contamination and 4% with labour shortages. Watson-Marlow Bredel’s Ashley Shepherd said: “Minimising downtime is massively important to production companies, because ultimately it results in lost revenue. While cleaning equipment appears to be a major frustration in reducing downtime, there are solutions available to help minimise the need to shut down production in order to clean some equipment. “For example, using a peristaltic pump for fluid transfer or dosing means that product is contained within a tube and never comes into contact with the pump. Neither do the pumps require additional seals and check valves for their operation. At the end of a shift or when a different duty fluid is used, the tube can be removed and replaced within minutes – a new tube creates a new pump. Some pumps are CIP/SIP capable, further reducing the need for downtime.” UK cannot afford to be average on skills, says CBI Finland once again took the number one spot in OECD’s three-yearly PISA test of the abilities of a sample of 15- year old secondary-school students, followed by Hong Kong (China) and Canada in second and third place. The PISA survey, based on tests carried out in 2006 in 57 countries that together account for nearly 90% of world GDP, is the most comprehensive and rigorous international yardstick of secondary-school students’ attainments. PISA 2006 tested students on how much they knew about science and their ability to use scientific knowledge and understanding to identify and address questions and resolve problems in daily life. The UK was ranked a lowly 14th, only slightly above the OECD average. Commenting on the OECD’s international comparison of educational performance Richard Lambert, the CBI’s Director- General said: “The OECD figures make for disturbing reading. At a time of increasing global competition, the UK cannot afford to be ‘average’. We must help our young people to attain the world class performance they are capable of. We need a renewed sense of urgency in tackling the UK’s underperformance in literacy and numeracy.” Perhaps most worryingly, across the across the OECD area as a whole learning outcomes have generally remained flat, while expenditure on education in OECD countries rose by an average of 39% between 1995 and 2004. customised solutions Specialists in Brake Motors For stopping any application To order a catalogue please contact us below. For the very latest product information, most up to date industry news, plus company profile information, visit the pages of <strong>Industrial</strong> <strong>Technology</strong> online at industrialtechnology.co.uk Tel. 01270 270022 Email. lafertuk@lafert.com www.lafert.com 6 More details: Write in 60 on the free information card
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