Manufacturers will need to continue with the good habits picked up during the recession throughout 2010, it has been suggested.
Gautam Dalal, UK head of diversified industrials at KPMG, predicted a challenging year for the industry.
And he explained that businesses will benefit from forecasting, as it will help with managing cash flow as well as providing a means to monitor demands on working capital.
Mr Dalal also noted that opportunities for British companies to expand into other markets are likely to arise, as the pound remains weak against the dollar.
Noting that some firms in the industry may bring elements of supply chains back to the UK, he said: "The government has indicated it intends to support and encourage investment by manufacturers that seek to increase operations in the UK so perhaps 2010 will reveal how these aims are intended to be achieved."
Positive signs for the sector emerged this week, as Markit and the Chartered Institute of Purchasing and Supply revealed that production continued to increase in December.
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