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The success of manufacturing in recent years has largely been due to output growth and greater penetration in new export markets. However, in the current economic climate, coupled with a weak outlook for global growth, how well is the UK positioned in order to survive the downturn? And what measures can be taken to put the manufacturing industry in a favourable position for when recovery approaches?

A decade ago, the UK’s productivity performance was the Achilles heal of the UK economy. Over the past five years output per hour has increased by 25%. This presents a staggering increase in comparison to the output of the rest of the economy.

Companies are using IT solutions to drive performance and efficiency in their business and in the past two years manufacturers have increased their IT budgets. This investment is focused on raising innovation outcomes, improving customer service and increasing production efficiency.

In addition, many organisations are implementing tried and tested lean manufacturing techniques, these include: reducing waste, improving delivery times, developing better relationships across the supply chain and focusing on continuous improvements which are paramount if companies are to sustain their competitive advantage. Rewards are greatest for those firms that implement lean right across the business from the supply chain to the manufacturing process.

Organisations that have implemented lean have seen tangible benefits. With the focus on measuring and targeting improvements in equipment efficiency, delivery times and labour productivity means the advantages from lean are clearly visible. In order to maximise the gains from IT a more systematic approach to performance measurement is required. In addition, organisations must identify other hurdles which may be encountered when implementing an IT solution. These are the skills of the workforce and the management team, and a good understanding of the relationship between IT investment and business improvements.

The use of both lean manufacturing and IT to support companies’ efforts to increase productivity and to improve efficiency are bearing fruit. Moreover, this investment in time and new technology has left the manufacturing industry in a stronger position to face the current economic downturn.

This is why many companies are turning to enterprise resource planning software www.infor.co.uk/solutions/erp/?CID=EMEA-UK-GB-ERP-0609-ARTICLE-WEDR4-WEPS1&WT.srch=1 to help better manage their resources and to co-ordinate their part of the business. So, no matter what business you run, you can benefit from dedicated lean technique tools like ERP software.