In June 2013, FoodManufacture.co.uk conducted a survey of food and drink manufacturing professionals, based in the UK, to find out how they felt about the state of the industry and what issues caused most concern. The results were extremely informative with 87% of respondents agreeing that the horsemeat scandal had damaged the reputation of the food supply chain.
During the survey participants were shown a range of statements and were asked to select from the following options:
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These statements were grouped into five key topic areas:
1. Market conditions
2. Trading relationships
3. Environmental management
4. Investment and employment
5. Product development
Market conditions
Despite the problems these industry professionals have faced since the horsemeat scandal in January 2013 they remain very optimistic about the future. The survey results showed 73% are more positive about the future of their companies compared to last year and 89% agreed they saw a long-term future for the UK food manufacturing industry.
Trading relationships
Trading relationships are a key area of concern for these professionals. 83% agreed that pricing pressure from retailers is threatening the quality of own-label products through excessive value engineering. They also agreed that this pricing pressure was cutting into resources devoted to new product development and innovation.
Environmental management
66% of respondents agreed that improving energy efficiency is one of the top priorities. These professionals also said that reducing packaging weight and recycling are key focus areas for their companies this year.
Investment and employment
The survey results showed that many companies will be looking to take on more staff this year than last year, but 60% feel their company finds it difficult to recruit people with the appropriate skills.
Even with a possible skills shortage, 71% of respondents said they aren’t looking to shift manufacturing outside the UK.
Product development
The survey showed companies are looking to invest more in new product development this year than last year. Part of this new product development strategy is to reduce saturated fat, salt and sugar.
However, new product development remains a conflicting topic as 72% of respondents said their customers are more concerned about the price of the product rather than ground-breaking new product development.
The FoodManufacture.co.uk survey shows whilst there are issues of concern in this industry, particularly with trading partnerships, these food and drink manufacturing professionals are still positive about the future and new product developments. Click here for more information and to download the full Food Manufacture State of the Industry Survey 2013.
