Diametric Blog
Published 02 September 2010 by dlamer
The UK manufacturing sector is maintaining a steady recovery according to the Confederation of British Industry (CBI), whose latest report shows that the fall in orders seen since the recession is slowing.
According to the CBI's report on the manufacturing sector, the order book balance rose to -14 this month. This represents an improvement from the -16 figure reported in July and whilst it indicates that orders are still falling, this fall has decreased to its slowest pace in the last two years.
This figure was reached by a survey of its business lobby group, where 21% of manufacturers said total orders were above normal and 34% said they were below.
Meanwhile demand from overseas markets has seen a strong recovery, welcome news to any label manufacturer or other such company operating outside of the UK. From a -12% slump in July 2010 the number of export orders has risen to -1% in August, representing a return to the figures commonly seen in overseas demand for British manufacturing.
"Prospects for the manufacturing sector remain very positive," said Lai Wah Co, the CBI's head of economic analysis. "Demand is steadily improving, helped by the revival of export orders after some weakness last month."
Optimism among manufacturing firms has in turn been boosted by the positive trend in the market. Last month only 6% of firms said they believed the volume of output at their business would rise in the next three months, whilst this month the figure has risen to 10%.
Ms Co said: "Our manufacturers expect slightly stronger production growth in the three months ahead. However, inflationary pressures within the sector have not fully faded and firms are predicting a faster rise in output prices over the next quarter."
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Published 27 August 2010 by dlamer
One of Britain's most distinctive brands is to celebrate its rescue and rebirth from 'oblivion', reports the Daily Telegraph.
When Triumph Engineering Co Ltd went into receivership in 1983, Britain's contribution to the world of motorcycling came close to disappearing forever. Yet British bikes and the brand's strong legacy were rescued when business magnate John Stuart Bloor took on the company and relaunched it as Triumph Motorcycles.
Following a substantial £80m investment, the brand has become a solid example of the best in British engineering and manufacturing. Today the firm's Hinckley factory is recognised as one of the most efficient motorcycle factories in the world, producing some 46,000 models each year.
Yet the threat of disappearing forever is still remembered by the brand and to mark its remarkable rescue, Triumph is to host a day of celebration. The "Triumph Live" event at the Mallory Park race circuit in Leicestershire will take place this September and will see a full programme of on and off track activities in honour of the firm's dramatic recovery.
In addition to a round of special invitation races, extreme stunt motorcycling and a round of the Triumph Triple Challenge, the event will offer visitors the chance to explore the history of the brand since its rebirth. As well as the latest line of bikes from the company's demo fleet and historic examples, visitors will be able to see the company's manufacturing plant in Hinckley - eight miles from Mallory Park - and see where everything from domed badges to exhaust pipes come together to make Britain's best known bike brand.
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Published 25 August 2010 by dlamer
McLaren executive chairman Ron Dennis has urged British manufacturers to ''dare to be different'' and focus on long-term goals.
In a speech at the Society of Motor Manufacturers and Traders (SMMT) Parliamentary Reception at the Houses of Parliament, Dennis, former head of the McLaren Formula 1 team expressed concern over the focus of the UK economy on the financial sector, rather than concentrating the engineering and manufacturing sectors.
Drawing comparison with Japan, Dennis was cited in The Manufacturer as saying that car-makers such as Toyota were supported heavily by the government with strict re-investment and research policies, whilst UK manufacturing industries were left to fight their own battles.
Despite this perceived lack of support, Real Business reports that the sector is growing substantially, with Office for National Statistics figures revealing that UK manufacturing in May grew by 4.3 per cent month on month - the biggest increase in growth for over 15 years.
In his ''Made in Britain'' speech, Dennis re-iterates the UK's ability to produce leaders in the manufacturing sector, saying of his native industry, ''Britain's Formula 1 innovation and engineering strength remain world-renowned and world-respected.''
In advice aimed at the whole of the UK manufacturers, including those in more specialist fields such as the badge manufacturer industry, Dennis said that long-term success should be driven by the government, customers and suppliers working together. Saying that the industry should not be afraid to embrace new innovations, Dennis commented: ''Daring to be different in order to create something truly excellent is a hallmark of Britain's engineering and manufacturing heritage.''
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Published 23 August 2010 by dlamer
British manufacturers are continuing to spur on the UK's recovery, despite an unexpected fall in industrial production in the UK in June.
According to figures released by the Office for National Statistics (ONS), shipbuilding and car manufacturing are driving the recovery. Manufacturing output rose 0.3 per cent in line with May's rise, although maintenance shutdowns in the North Sea led to a 0.5 per cent contraction in output on the wider industrial production scale.
The ONS believe the month-on-month fall in industrial production is unlikely to lead to a revision of the growth in the second quarter.
The fall in industrial production was due to the biggest decline in oil and gas output (6 per cent) since last August, but the ONS remain confident that their overall positive estimate will remain unchanged.
Manufacturing is growing at an annual rate of 4.1 per cent, recovering well from the recession. News that car production is 22 per cent ahead of this time a year ago will be welcomed by those in more specialist fields, such as manufacturers who specialise in domed badges for automobiles.
Ship building has seen a rise of 41 per cent, boosting those businesses in the marine manufacturing sector.
The ONS also revealed data which showed annual factory gate inflation slowed less than expected during July, as higher food prices outweighed the drop in the cost of petrol. Input inflation picked up less than expected at 10.8 per cent from 10.7 in June.
Alan Clarke, economist at BNP Paribas told The Telegraph: "The burden of rising imported inflation that the economy has endured over the last 18 months or so is showing signs of reversing."
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Published 20 August 2010 by dlamer
Police on the Isle of Wight are investigating a series of peculiar, low cost but highly irritating thefts from motor vehicles - the removal of domed badges from the outside of cars.
According to The Isle of Wight Gazette, motorists in the Sandown area have been plagued by petty vandalism and the theft of their car manufacturer's badges from their vehicles. Although the resulting damage is only a minor and superficial, replacing these domed badges can often be expensive, as few garages will be able to easily find a customer a replacement badge.
Manufacturer and car model logos and badges may seem an odd choice for theft given their lack of worth outside of the collectors market but it is a surprisingly common problem. User forums on motoring websites show that throughout the world, people have registered their complaints over the issue and its prevalence in certain areas.
However unlike most thefts, there is little economic basis for this type of crime. Instead, the motivations are generally far from rational and are rarely made by adults - most frequently, this kind of petty theft is by teenagers who offer little in the way of explanation once apprehended.
This is almost certainly the case in regards to the Isle of Wight's recent problems. According to the gazette, already officers from a Targeted Patrol Team in Sandown have arrested a 17-year old and a 16-year old. Following questioning the former has been released on bail whilst the latter has received a reprimand for thefts from motor vehicles.
"A number of car badges were recovered by the police, and we are continuing to trace all the motorists affected so statements can be taken," says investigation officer, PC Rob Quick. "I'm keen to hear from anyone with information about these thefts, in particular people in Sandown on the night of Tuesday, July 13 who may have noticed teenagers acting suspiciously near parked cars."
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