British manufacturers stick with UK suppliers
Many UK manufacturers are still fearful that the risks of global trade outweigh the opportunities, according to new research from Barclays.
Findings from a survey by the bank suggest an emphasis on quality and loyalty amongst UK manufacturers with businesses looking to each other for support, rather than looking abroad.
Almost two thirds of those surveyed source commodities or components from the UK and when asked to name the key deterrent as far as trading overseas is concerned, 36% stated that they simply prefer to source from the UK; followed by currency risk (19%) and fearing goods or payment may not be received (11%).
Mark Lee, head of manufacturing at Barclays Corporate Banking, comments: “There is a clear sign of patriotism amongst UK manufacturers as values, loyalty and confidence hold firm with proximity being seen as a key driver.”
He adds: “Given the current economic climate, a focus on domestic strategies and procurement is understandable however manufacturers must not be afraid to play a lead role on the global supply chain stage.”
The study also reveals that there is a confidence amongst UK manufacturers when it comes to their role in the supply chain.
When asked how they would describe the level of contractual security they enjoy with the companies they supply, over half believed their customer relationships to be stable in the short-term, whilst one third saw stability stretching into the foreseeable future.