The Locksmith Journal Sep-Oct 2014 - Issue 34 | Page 8

PROUD SPONSORS OF THIS PAGE 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