FOOD MANUFACTURE SURVEY 2010: THE RESULTS IN FULL

Food Manufacture’s annual state of the nation reader survey is run every May and is intended to serve as a barometer of confidence levels in the industry.

MARKET CONDITIONS

1. I am more positive about the future of my company now than a year ago.

• Agree 76%

• Disagree 21%

• Don’t know 3%

2. I expect my company's profit margins to improve over the next year.

• Agree 65%

• Disagree 28%

• Don’t know 7%

3. Lack of access to finance has had a detrimental effect on my business this year.

• Agree 37%

• Disagree 54%

• Don’t know 9%

4. I see a long-term future for the UK food manufacturing industry.

• Agree 91%

• Disagree 5%

• Don’t know 4%

INVESTMENT AND EMPLOYMENT:

1. My company is planning more capital investment this year than last year.

• Agree 50%

• Disagree 37%

• Don’t know 13%

2. My company will take on more staff this year than last year.

• Agree 26%;

• Disagree 47%

• Don’t know 17%

3. My company currently has vacancies in key roles.

• Agree 36%

• Disagree 59%

• Don’t know 5%

4. My company plans to employ more overseas nationals this year.

• Agree 20%;

• Disagree 56%

• Don’t know 24%

5. My company plans to devote more resources to training this year than last year.

• Agree 59%

• Disagree 30%

• Don’t know 11%

TRADING RELATIONSHIPS

1. Pricing pressure from retailers is threatening the quality of own-label products through excessive value engineering.

• Agree 81%

• Disagree 13%

• Don’t know 6%

Pricing pressure from retailers is threatening to cut into resources devoted to new product development and innovation.

• Agree 73%

• Disagree 19%

• Don’t know 8%

Pricing pressure from retailers is threatening to commoditise branded products through excessive promotional activity.

• Agree 78%

• Disagree 10%

• Don’t know 12%

2. My company aims to do more business with the discounters this year.

• Agree 25%

• Disagree 47%

• Don’t know 28%

3. My customers are taking longer to pay bills this year than last year.

• Agree 55%

• Disagree 26%

• Don’t know 19%

4. My company will invest more into improving the quality of product data shared with customers this year.

• Agree 58%

• Disagree 23%

• Don’t know 19%

5. The withdrawal of credit insurance is still causing problems for my company.

• Agree 29%

• Disagree 42%

• Don’t know 29%

6. I expect my company to do more business with caterers this year.

• Agree 50%

• Disagree 31%

• Don’t know 19%

7. My business has been able to pass on cost increases to customers this year.

• Agree 38%

• Disagree 46%

• Don’t know 16%

NEW PRODUCT DEVELOPMENT:

1. My company plans to invest more in NPD this year than last year.

• Agree 57%

• Disagree 28%

• Don’t know 15%

2. My customers are more focused on price than groundbreaking NPD.

• Agree 68%

• Disagree 22%

• Don’t know 10%

3. Consumers' spending habits have permanently changed during the recession.

• Agree 40%

• Disagree 45%

• Don’t know 15%

4. Reducing saturated fat, salt and sugar is a key part of my firm's NPD strategy.

• Agree 58%

• Disagree 29%

• Don’t know 13%

5. The uncertainty over health claims legislation has put my company off using some health ingredients.

• Agree 23%

• Disagree 51%

• Don’t know 26%

ENVIRONMENTAL MANAGEMENT

1 - Exploring alternatives to landfill for waste products is a key priority for my company this year.

• Agree 60%

• Disagree 31%

• Don’t know 9%

2 - Improving energy efficiency is one of the top priorities for my company this year.

• Agree 77%

• Disagree 18%

• Don’t know 5%

3 - My company is considering implementing carbon footprint labelling on products this year.

• Agree 15%

• Disagree 59%

• Don’t know 26%

4 – My company plans to determine the water footprint of its products.

• Agree 19%

• Disagree 57%

• Don’t know 24%