Cost-cutting study

Manufacturers in the UK could do more to reduce their business expenditure, according to the latest research conducted by YouGov.

Commissioned by the Expense Reduction Analysts's Centre for Cost Reduction, the ‘Is your Business COSTING you?’ study reported that manufacturers are missing a significant opportunity to reduce their business expenditure and retain profit during the recession.

The survey revealed that manufacturing companies were failing to increase their bottom lines through neglecting their cost bases, with more than half of the 109 respondents stating that they could achieve cost savings of six per cent or more. A third of respondents had not conducted any contract renegotiations with suppliers since September 2008, when the steep decline in the economy started. Of those who did, only six per cent managed to change payment terms from advance to arrears.

The research also suggests that around 22 per cent of companies had not put in place any cost-reduction programmes during the last six months and only 33 per cent were either satisfied or very satisfied with their organisations' initiatives to reduce such business expenditure.