Manufacturers planning an exports push – EEF/NatWest survey

RESEARCH from the manufacturers’ organisation EEF and NatWest Bank shows that nearly three quarters of producers (71%) are planning to export to new markets in the next three years.

And 73% of companies plan to bring new products to market over the same time period.

The EEF/NatWest survey shows manufacturers are substantially increasing their innovation in new products, technology and research and plan to use this to grow their presence in emerging market.

The EEF/NatWest Innovation Monitor points to increasingly ambitious innovation strategies following a difficult recovery where most businesses were focused on improving processes to cut costs and meet the needs of existing customers.

But companies are now looking to develop new opportunities, with more than 70% of manufacturers planning to move into new markets on the strength of innovation in products and services – a jump from 54% in the past three years.

However, innovation is a difficult process, which requires significant resources and expertise. Selling into new markets has heightened some of the challenges manufacturers face, particularly the need to deliver innovations quickly.

Richard Halstead, a regional director at EEF, said: “After a long and slow recovery manufacturers are looking to drive growth through innovation, developing new products and services for new markets.

“However, the demands of selling into new markets have increased the ‘need for speed’ when it comes to innovation, something that remains a key challenge for manufacturers.

“Encouragingly, government schemes are well-targeted to help manufacturers, but in order to deliver the stability companies need, there must be a longer-term commitment to innovation funding.”

Mark Eastwood, head of manufacturing for business and commercial banking at NatWest, said: “Manufacturing plays a vital role in the UK economy and is the backbone of real growth, so it is fantastic to see that confidence is growing across the sector.

“Investment in innovation and research is key to keeping on top of this global market and manufacturers need stability and certainty as they look to invest in new products and markets.”

The survey covered 147 respondents and was conducted in June.