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INDUSTRYNEWS
Government Warned to Act Over
Growing Risk to Material Supply as
UK Approaches ‘End of an Era’
Around 40% of manufacturers’ operational costs are material costs - 75%
of EU manufacturers have seen material costs increase since 2000.
In the last decade, commodity price
volatility has been higher than at any
other time in the last 100 years – average
resource prices have doubled since
2000.
Demand is expected to rocket, but the
UK’s sources of essential materials are
concentrated, with China the leading
producer of 22 elements of strategic
economic value.
At risk: in 2010 the EU deemed 14
materials to have supply risks – this has
now increased to 20, all of which play a
key role in manufacturing[1].
Competitor countries are responding to
the risk – the UK is in danger of being left
behind.
A new report by EEF, the manufacturers’
organisation, warns the Government to
act over escalating risks to the UK’s supply
of essential materials. It says that the
global growth in middle-class consumers,
increased demand for all commodities
and an over-reliance on China for strategic
supplies, is leaving the UK vulnerable.
But, while other manufacturing nations
have strategies in place to shield their
economies from resource risks, the UK is
lagging behind.
The report – Materials for Manufacturing:
Safeguarding Supply – came ahead of the
Resource Association’s annual conference
on 9th July, which debated resource
issues. It digs behind concerns raised by
UK manufacturers that volatile material
prices and security of supply pose a threat
to growth and confirms that the UK does
indeed face escalating risks.
‘Resource security is
dynamic and complex’
CHINA IS THE LEADING SUPPLIER
OF MATERIALS TO THE UK
Globally, the consuming middle
classes are expected to swell from
1.8 billion people to 4.9 billion by
2030. Demand for all commodities is
expected to rocket by 30 – 80% by 2030.
However, the UK’s supply of essential
materials is concentrated. China is the
leading supplier of materials to t