At EEF, we are dedicated to securing the future of the UK’s manufacturing sector. And since the onset of the financial crisis, we have been helping manufacturers survive through the downturn so that they are well positioned to take advantage of the upswing. But even as the recession continues to unfold, we know the UK faces hard choices about what will replace a decade of unbalanced, debt-fuelled growth.
The government, for its part, released its updated Manufacturing Strategy just one week before the collapse of Lehman Brothers helped send the global financial system to the brink of failure. The strength of the new strategy lies in a simple statement: that the UK needs a better balanced economy based on a strong and competitive manufacturing sector.
At EEF, we believe that this rhetoric needs to be turned into immediate action. Uncertainty, a lack of demand and cash flow constraints are a toxic mix as far as investment plans are concerned. Further government support may be needed to ensure that the success of UK manufacturers is not derailed by debt-fuelled growth in the rest of the economy.