Competitive horizon
Article Type: Competitive horizon From: Strategic Direction, Volume 30, Issue 6
UK manufacturers increase the focus on emerging markets
A report by EEF points out that manufacturers in the UK are helping to increase exports through a policy of taking their goods to fast-growing emerging economies. According to the organization for British manufacturers, firms are adopting a proactive rather than a reactive approach and using smart strategies to target these markets. The rationale is that scope to secure export sales is considerably greater in such economies, many of which have now been identified as priority targets. Increasing trade with Brazil is a major goal, as is expanding the volume of business in Asia. Even though many UK products are still aimed at Europe and the USA, changing trends are evident. The report, as published by http://www.theengineer.co.uk, shows that China has risen to become seventh largest export market for UK producers. The next few years should likewise see Russia and India enter the top ten export destinations. However, it is the view of EEF that manufacturers can be impeded by a lack of knowledge and call on the UK government to better publicize what expert help and advice is available to them.
Economy in Russia set for stronger growth in 2014
Various sources have upwardly revised their economic growth forecasts for the Russian economy in 2014. Moody’s earlier predicted a 1.5 per cent expansion, but the figure proposed by the ratings agency is now 1.9 per cent. The nation’s Economic Development Ministry is even more optimistic, as it expects GDP to expand by 2.5 per cent. As reported by http://www.rt.com, analysts believe that the Winter Olympics held in Sochi will prove to be a key growth driver. Potential for tourists to be attracted by the infrastructure built for the event could further boost Russia’s economy. A positive impact on exports is also likely if the revival in the Eurozone countries gathers momentum. On a less positive note, Moody’s does feel that 2014 will see unemployment rise by 0.8-6.3 per cent.
Plastic favored by Indian automotive industry
Analysts at Research and Markets report growing moves in India’s automotive sector to replace the metal parts currently used in production with plastic components. The report, as published by http://www.prw.com, notes that plastics offer various advantages over metal components, and the increasing shift is motivated by the twin possibility of lowering both weight and manufacturing costs. This move should facilitate further expansion for the industry within a nation already established as a key producer of automotive plastics. Research and Markets predicts that the next five years will see revenues double for the automotive plastics sector in India as consumption of polypropylene and polyurethane soars.
How to gain an edge through better energy management
Small and medium enterprises (SMEs) can secure a competitive advantage over their larger rivals by efficiently managing their energy usage, according to a Growth Business (http://www.growthbusiness.co.uk) report. Fundamental actions such as switching off lights and heating when not necessary and installing sensors in toilets and other areas infrequently occupied can help drastically reduce energy costs. Heating accounts for a sizeable percentage of all energy costs, so improved efficiency in this respect can pay handsome dividends. One suggestion is to ensure that time-switches are set so that heating and ventilation are only when appropriate. In retail environments, for instance, it may be possible to turn off the heating an hour before closing time without any detrimental effect. The report similarly advises SMEs to use modern fluorescent tubes which emit a brighter, more natural light while being less expensive to run. Regular maintenance is a must, especially where refrigeration is concerned. Simple cleaning to clear dust from condensers should be complemented by basic checks to ensure that appliances remain free of the clutter that restricts airflow and increases energy consumption as a result. In combination, these activities can make a difference, and the impact can be even greater if firms involve their employees. Giving staff specific responsibilities and appointing energy champions are some of the suggestions made.
