Despite our current economic problems, the manufacturing and industrial sector remains one of the key industries for the UK economy. With businesses operating within time horizons of weeks rather than months, flexibility is the best approach. Restrictions in the availability of credit and increases in the cost of borrowing, together with the sharp contraction in global demand, will hit anyone hard.

Continuing uncertainty brings an additional level of complexity to the decisions UK manufacturers must make on competing in the global market place. Fluctuations in exchange rates, input costs, commodity prices, freight and employment costs all have an impact. Then there are longer-term factors such as time to market, protecting IP and the quality and reliability of local suppliers. Strategic plans need to be reviewed, along with location and sourcing decisions in order to protect your supply chain. In short, manufacturers have got their work cut out to profit from the economic upturn.

But it's not all doom and gloom. New growth is possible, but it will come from increasing production capacity, forming the right joint ventures and strategic alliances, and by investing in research and development. Outside the UK, competition from emerging economies remains strong. They have developed low-cost models, but are now moving up the value chain to produce innovative, higher quality products. Exporting advanced technologies to these countries presents a real opportunity for UK businesses. However, the failure to work with the right adviser - one with experience in overseas markets, an understanding of cultural differences, international tax experience and an extensive network of contacts - will mark the difference between success and failure.

At Menzies, we provide an integrated and commercial approach to helping clients across the whole of the manufacturing and industrial sector. We work closely to find solutions to industry issues, utilising our expertise in everything from business advice and audit to tax advice and corporate finance, both in the UK and overseas.