Manufacturing Vs Service – A Tale of Two Economies?

With industrial economies (such as Germany’s) having come out of the recession more quickly than our own, it is tempting to suggest that the countries who ‘make things’ are in a better position to weather economic instability than those, like our own, who don’t focus on manufacturing. Indeed, such a thesis is strongly supported by certain media outlets who feel that any move towards service sector growth – and as a result, away from manufacturing output – does represent an ominous shift.

Arguably, this perception is borne out by the impact of the collapse of the banking sector, one of the UK’s strongest industries, and the notion that somehow production is better for our economy than services are, as manufacturing produces tangible goods and output.

A recent headline in the Financial Times (02/02/10) ‘Manufacturing Surges Back’ supports the same. Focused on the latest purchasing managers survey, the story comments that ‘UK manufacturing activity surged in January, expanding at its fastest pace since 1994’ as the index reached 56.7 – any reading greater than 50 signals expansion. It adds the point that ‘a strong rebound in manufacturing has raised hopes for a swifter recovery, as companies around the world reported resurgent orders’.

Perhaps paradoxically it is the recession (and its end) that created the climate for such positive figures – the weak pound and moves to restock as global demand returns – rather than any sort of added robustness of the manufacturing sector itself.

The reality is that service and industrial economies both contracted during the past two years. As global and domestic demand fell, the major manufacturing countries were hit hard (Japan down 8.6% and Taiwan down 14.5%). While closer to home, a comparison between the service-based UK (down 6%) and Germany’s industrial economy (down 6.7%) reveals a broadly similar contraction rate.

What’s differentiated recovery rates to date is not so much whether an economy is manufacturing or service-based, but rather individual country responses to the downturn. In Germany, for example, the creation of a ‘bad bank’ would effectively ring fence bad assets for a long term management approach, enabling credit markets to operate.

In the UK the dominance of the finance sector resulted in a longer, but some people would argue shallower, downturn. However, the continuing dysfunction within the banking sector has restricted the access to credit – resulting in high levels of default and failure across business sectors. As a result, construction has been one of the hardest hit industries in the UK, down 14.1% at the peak of the recession, while manufacturing (down 13.8%) and utilities (down 13.2%) have similarly suffered.

In reality, while service and production-based economies do exhibit a very particular set of characteristics, it is way too simplistic to claim that these have resulted in one country emerging from recession before another has. To do so with any degree of certainty, one must take a broad approach and analyse the host of socio, political, economic and fiscal factors at play to achieve a true picture.

D&B provides a deep insight into how customers are likely to perform in the near future, enabling you to proactively manage your cash flow. Our tried and tested credit scores, acknowledged as the most reliable of their kind, will help you understand potential risk.

Posted in Uncategorized | Tagged , , | Comments Off on Manufacturing Vs Service – A Tale of Two Economies?

How Outsourcing facilitates Banking, Finance and coverage Sectors?

The Banking & Finance service enterprise is present process a number of demanding situations. market instability, augmented law, reduced demand and raised competition are pushing the sector to include new and advanced running models. The procedure of outsourcing is adopted by the banking and economic companies as a key strategic circulate to live to tell the tale the current phase of the enterprise.
business challenges:The BFSI (Banking, financial offerings and insurance) enterprise has usually been open to leveraging the benefits of outsourcing, possibly because of its economic desire. In short, the subsequent motives are fuelling the BFSI market to transform the manner it’s far running:• Regulatory landscape (conceivably the most stern in a long time) desires to be accompanied
• monetary uncertainties keep to address the main and rising financial system needs to be tackled
• Ever growing patron engagement models and channels need to be used and transformed
• The position that technology plays, mainly in monetary offerings, to outline the pinnacle and bottom line of business growth wishes to be restructuredThe demanding situations above are very particular and one-of-a-kind compared to other enterprise sectors and need unique interest to get resolved. economic carrier vendors are arising with effective ways to remedy these problems and enhance the commercial enterprise talent of banks and different monetary establishments. stop customers are stressful business agility and entrepreneurs are looking for partners who can assist them exceed strategically in the marketplace. BFSI is one of the top most business sectors that prefer outsourcing as an effective method to cater to such business demanding situations.
answer or provider services:to fulfill the above demanding situations, marketers should take the assist of specialised provider companies. With given beneath service services, a carrier company empowers economic allied groups to cater to the enterprise necessities:• monetary making plans and management
• market research
• financial studies and advertising
• Accounting BPO services
• Banking offerings
• SLA (service level settlement) managementAn outsourcing company enables businesses to increase their level of expertise with the aid of offering skilled accountants and finance professionals who’ve years of operating in this domain. They implement powerful techniques, techniques and tools to beautify the procedure efficiency of financial corporations.end:With in-depth area expertise, a worldwide shipping community and a robust operational excellence permit groups to attention on the middle commercial enterprise regions. service companies manipulate complete commercial enterprise methods and supports finance related choice-making through their wealthy analytical and studies abilties. besides, there are lots more benefits of partnering with a monetary service issuer.

Posted in Uncategorized | Tagged , , , , , , , , , , | Comments Off on How Outsourcing facilitates Banking, Finance and coverage Sectors?