British manufacturers expect to have to cut costs by up to 50% over the next three years, according to a survey by specialist consultant the Bourton Group.
The majority (60% of the 340 company executives surveyed) said they had already undergone major change programmes in the past two years.
However, pressure on prices from customers means they still need to cut costs by an average 11 15% a year over the next three years in order to keep supplier contracts.
On top of the pressure to cut product cost and the demand to maximise shareholder value is the need to reduce time to design and market new products.
News Analysis, page 14