East Midlands manufacturers ride the recession storm

By Rod Addy

- Last updated on GMT

Related tags: New product development, Economics

Cash flow difficulties, market volatility, reduced customer orders and consumer spending cutbacks were all consequences of the recent recession reported by small food and drink manufacturers in the East Midlands.

A survey initiated by regional support group The Food and Drink Forum and disclosed last month highlighted these issues. Those that had approached banks for finance reported more stringent terms and increased demands for security.

Some said there had been lower demand for products from certain sectors, such as pubs. And some claimed that firms had introduced stricter payment terms for suppliers.

However, the majority of companies canvassed also reported that things were now going well, and none claimed they were undertaking or threatening redundancies. Some said the economic climate had given them new opportunities to innovate, vie with competitors and shine as well as discover new markets for their products.

"Overall, the findings revealed that the majority of firms are coping well, and are planning for a robust future with investment in new product development, capital expenditure on plant, skills training and development," said Food and Drink Forum md Fiona Anderson.

Firms surveyed ranged from home-run businesses consisting of one or two people to a company with a turnover of £5.5m.

Click here​ for the full results of Food Manufacture's industry survey.

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