Globalisation is a double-edged sword.
It allows companies, virtually regardless of size and sector, to reach out to almost anywhere in the world.
Simultaneously it also means that nowhere is safe – wherever a company does business, whether at home or abroad, others will be there too, competing for every niche and opportunity, looking to offer cheaper alternatives or more sophisticated products.
This report explores how China and other low-cost economies (such as those of South-east Asia and the new nations of the European Union) undoubtedly offer formidable competition for Britain's manufacturers. This is not necessarily a bad thing as it also throws up many opportunities from significant new markets coming on-stream.
It also forces manufacturers to concentrate on those areas where we still excel – through innovation, high productivity, brand reliability and a successful focus on high-end goods that top wish-lists for the affluent the world over.
It reminds us that greater affluence among the developing economies actually creates new and growing markets for many of our goods. While threats to some manufacturing sectors remain, for others new opportunities could well redress the overall balance in this country’s favour.