Business challenges in the region – manufacturers urged not to ‘do as they have always done’

Aug. 18, 2010 - PRLog -- While the regular business chestnuts - lack of sales (24% of respondents) and cash flow (16% of respondents) – continue to cause concern amongst manufacturers in the North West, the monthly review of manufacturing challenges from the Manufacturing Advisory Service (MAS) North West sees the need to develop new products (13% of respondents) entering the top three manufacturer concerns for the first time.

While MAS has always encouraged manufacturers to develop new ideas and products, the signs are that manufacturers across the region are now re-evaluating their business practices in a more consistent and forward-looking manner. They are taking on board advice and assistance from organisations such as MAS, and many are setting their sights on world-class competition. However, one of the stumbling blocks now appears to be an emerging need for manufacturers to up their game further with the development of new products.

Head of MAS, Paul Fewtrell said: “It may seem a rather obvious observation that manufacturers need to develop new products, but our experience has shown that some are a little backward at coming forward when it comes to new product development. Although this may be seen as manufacturers doing as they have always done – and manufacturers in the North West do it well – sadly, the end result is that they will ‘only then get as they have always got’.

“There are signs of recovery in the world economy, where most countries – the most notable exceptions being Greece, Finland and Romania – have demonstrated growth in Quarter 2. There can be no doubt that the favourable exchange rate is currently allowing manufacturers a window to seize export opportunities. However, while the economy recovers, and other factors such as the increase in VAT rates takes hold next year, they do need to have planned for the future and ensure they are ready to take on the competition. And while it may seem glaringly obvious, new product development is certainly one way forward for our region’s manufacturers to be up there with the best.”

Manufacturers in the North West keen to have their concepts transformed into reality can always visit the Manufacturing Institute’s Fab Lab (fabrication laboratory), located in the Chips Building, New Islington, in the heart of Manchester. Manchester’s Fab Lab (www.fablabmanchester.org), the first in the country, is a fully kitted fabrication workshop for those with new product development ideas but without the method of producing them.

Businesses can take the opportunity to develop and make prototypes for new product ideas, with support from the experienced Fab Lab staff and everything needed to produce accurate 3D models and prototypes. Most recently, Fab Lab came to the rescue of a Bolton-based greeting card manufacturer, helping with the design of an environmentally-friendly greeting card stand costing an amazing 98.8% less than their existing plastic stand.

For further information on the services available to help manufacturers in the North West, please visit the  Manufacturing Advisory Service’s home page at www.mas-nw.co.uk or call 0800 093 9077.


ENDS

NOTES TO EDITORs

1. The Manufacturing Advisory Service offers manufacturing companies with practical, hands-on support in all aspects of manufacturing to help achieve improvements in productivity and competitiveness. Since 2002, MAS North West, which is delivered in the region by The Manufacturing Institute, has helped manufacturers to generate financial returns totalling £739 million and to safeguard 8790 jobs.

The service includes:

• A direct helpline - 0800 093 9077

• A free manufacturing review

• A programme of factory visits and networking events

• Subsidised consultancy support

• Links in to other support organisations


2. The Manufacturing Institute (www.manufacturinginstitute.co.uk) is an independent charity - driven by manufacturers for manufacturers. For 15 years The Manufacturing Institute has helped transform manufacturing performance, working with over 4000 companies to gain competitive advantage from high impact skills building and productivity improvement programmes.

3. The European Regional Development Fund (ERDF) programme allocates funding to different regions throughout the European Union to boost economic development in less prosperous areas. ERDF North West is part funding the Manufacturing Advisory Service.

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Small and medium size North West manufacturers have access to a fully or part-funded manufacturing review to review to assess existing working processes and identify the best areas for improvement.