Welcome to the Global CEO (UK) blog. Its aim is to draw attention to developments and ideas in the world of supply management and in the work of the profession’s Institute.
We change the blog monthly, and I would welcome your comments personally on ceoblog@cips.org
David Noble FCIPS
What now for manufacturing in the UK?
Last month’s Purchasing Managers’ Index on Manufacturing showed that although the rate of growth has slowed, the sector is still expanding. It’s good news that the index is still positive for the fifth successive month, but pegging back the optimism to some extent is the reality of weaker exports and a slowdown in production, mostly in the area of consumer goods. The Eurozone crisis appears to be coming to a head, and who knows what the long term impact will be on the market for 45% of the UK’s manufactured goods.
A recent survey of UK manufacturers by accountancy network BDO paints a similar picture. While confidence is increasing, the survey also reveals that only 26% of respondents thought that we have the right kind of policies in this country to stimulate and support growth in the manufacturing sector. So what kind of help are they asking for? Among the suggestions coming out of the research are increased focus on skills training, a clear policy to favour UK companies when awarding public sector contracts, and the creation of a bank for industry to provide the growth capital, particularly for SMEs.
The debate will go on, but if we want our manufacturing sector to help re-balance the economy we need to do all we can to create the right conditions for sustained growth.
Free travel buyers conference
If you’re a travel buyer in the UK and you’re a CIPS member, there’s just time to book your free place at the Institute of Travel & Meetings’s annual conference in Manchester on 21-23 May [link]. With today’s global marketplace, travel is now a significant spend for many organisations, and escalating fuel costs are putting corporate budgets under strain. ITM estimate that UK companies’ travel and meetings spend is now in excess of £14 billion. It’s a major cost of doing business, so managing this key overhead efficiently can have a big impact.
Catch up with my column in Supply Management magazine