Manufacturing output falls for eight successive months

Tom Lawton, Head of Manufacturing, at BDO comments on the Index of Production figures released by the Office of National Statistics:

“Today’s figures continue the downward trend of recent indicators and show that the manufacturing sector is well and truly struggling.  For many months now most manufacturers have seen a consistent fall in new orders and have been either reducing working hours or staffing to try and keep their heads above water.” 

“However, for many the next few months will be sink or swim. The key to survival in these tough economic conditions will be optimising cash reserves through all possible means, including cost saving exercises and working capital management, particularly inventory reduction,” continues Lawton.

“Unfortunately, it looks as if the bad times are set to continue into at least the short term future with increasing manufacturing company failures through 2009 and 2010,” he concludes.

ENDS

For more information, please contact email Dee Crooks at BDO, or telephone 020 7893 2761 / 07815 172 051

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