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News Release from: Zirkon
Edited by the Manufacturingtalk Editorial
Team on 15 April 2003
Middle East action has halted
investments
The EEF's first quarterly report of 2003 says that political and economic uncertainties are delaying recovery in engineering and manufacturing and the prospect of war is stopping companies investing.
The EEF's first quarterly report of 2003 says that political and economic uncertainties are delaying recovery in engineering and manufacturing and the prospect of war is stopping companies investing The truth is, says Tony Inskip, Director, Zirkon, that even before the outbreak of war the continued decline in UK manufacturing and engineering, and the resultant over capacity in these markets, has given companies cause to reconsider future investments
This article was originally published on Manufacturingtalk on 18 Oct 2002 at 8.00am (UK)
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Volume manufacturing has already been taken off-shore in favour of countries which can offer extremely low labour rates and significantly reduced government and corporate taxes.
Future investment in the UK must concentrate on small-volume, flexible, technology-led manufacturing.
Nevertheless, a war in Iraq can only serve to add to the uncertainty and nervousness of investors.
They will be asking what repercussions the British economy will suffer - not only from the country under attack, but also in the face of potential trade embargoes from countries opposed to Britain's involvement in military action.
The engineering and manufacturing industry must also brace itself for job losses which will almost inevitably follow.
Employment in the industry is reported to be declining at a rate in excess of 10,000 jobs per month.
With the exception of those companies which supply the military, the onset of war is likely to produce even further reduction in sales and profitability for manufacturing companies.
Companies which have left it until now to react will find there is little to be done in the short term to minimise the impact war will have on business.
At Zirkon we are fortunate to have had an aggressive growth strategy in place for the last 18 months and furthermore we do not depend on customers in the countries most likely to be directly effected by the war.
Whilst few, if any, in the manufacturing industry are going to thrive in the current economic climate, at Zirkon we will continue to look after our customers and tenaciously chase new business opportunities as they arise to ensure we will, at least, survive.
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