HIGH-MARGIN specialist products are the key for Yorkshire manufacturers defying the challenging economic conditions.

Leading manufacturers argued that macroeconomic data threatened to overshadow the success of individual companies.

There was also agreement at the round table discussion hosted by TheBusinessDesk.com, in partnership with DLA Piper and Deloitte, that a lack of confidence was continuing to harm business.

But manufacturers are not waiting for on an improvement in the economy and are instead taking strategic decisions to focus on markets where there are profits to be made.

Stuart Anderson, group managing director of plumbing and heating manufacturer Pegler Yorkshire, said: “We have discontinued £20m of sales and removed low margin from our focus.

"We invest in new technology and drive the business that way. This year we are spending £5m on new equipment and technology."

The Government is exhorting UK businesses to export but businesses around the table had long since abandoned the idea that domestic demand could support them.

Indeed, with the crisis facing the Eurozone, horizons have shifted much further afield.

"Europe is slowing down and we can’t get any insurance on our customers in Greece," said OSL Group managing director David Grey.

"India is going like a train, as is China, the Pacific Rim and Australia. That’s what’s supporting growth.”