Industry
Industry market overview
Due to this sector's diversity, the economy will affect each sub-sector in different ways at different times. The state of the UK manufacturing industry is one of decline over many years. Changing consumer trends, technology advancements and international competition have led to a reduction in output and employment. Whilst there has been a decline in industries such as textiles and machinery manufacturing in the UK we have seen an increased output in areas such as electronics.
Plastics
The plastics manufacturing industry is diverse. Due to improved working practises, processes and the use of modern machinery we target the companies involved in injection moulding, blow moulding and extrusion. These are the prime processes for quick production of large numbers of identical items from high precision components to disposable consumer goods.
The 3 principle types of plastics firms are the small, independent trade moulders, who are generally low volume niche operators, large independent companies with high production and generally supply standardised products for general applications, and the large international moulders who supply high volume markets and customers, utilising advanced production technology.
Electronics
The electronics industry is one of the fastest growing areas of the industrial sector and forecast to be the largest single industry in the UK in the next few years. Characteristics of the electronics sector include; safe working environments, (due to the use of computer technology and therefore the reduction of operating dangerous machinery), high standards of housekeeping (because of the manufacturing equipment and processes in the quality assurance procedures) and improving industry standards in training and technology due to EU legislation.
Those trades which manufacture completed products for either domestic or commercial usage are preferred and with this sector being characterised by a blend of manufacturing and service products, it allows us to be specific in our target trades.
Engineering
The UK still has a substantial engineering industry, with many trades producing a wide variety of metal based goods that fall across 3 of our industrial sub-sectors, basic metal, machinery and equipment and motor vehicle parts.
The term "engineering" covers a hugely diverse mix of trades including processing, manufacturing, assembling and finishing. Firms can range from molten metal processing through to light mechanical engineering. In addition, firms often undertake a variety of specific trade processes that cannot be easily classified within a broad level description, for example, precision engineers could undertake work in a very wide range of activities.
In Summary
In spite of a general decline within the industrial sector, there is still a large manufacturing market. By design, this sector can encompass heavy risks, complex business, sophisticated processes which can inevitably lead to substantial exposures especially within the liability and business interruption classes.
With the development of new technologies, awareness of health and safety, industry regulation and legislation, more businesses are developing safer environments in which they work, ensuring a better risk from an insurance perspective.
