Manufacturers in Thailand, Australia and New Zealand view globalisation as a threat, an international survey shows.

Published on December 7, 2007

Their percentage balances - the difference between the proportion of businesses indicating an opportunity rather than a threat - were reported as minus 13 per cent, minus 6 per cent and minus 5 per cent, respectively.

The Grant Thornton International Business Report 2007 found that on the other hand, most manufacturers in Malaysia and India were bullish on globalisation making new markets accessible and offering cost savings by outsourcing. Malaysia's percentage balance was 73 per cent, with India right behind at 72 per cent.

Accounting firm Grant Thornton's International Business Report 2007 ranked Singapore third at 64 per cent.

The report on manufacturing reveals that manufacturers across the world are being hit hard by the rising costs of raw materials and energy, which is creating cost pressures for manufacturers. Globally, 61 per cent of surveyed businesses reported being most concerned about raw-material costs and 45 per cent reported energy costs as a concern.

Turkish manufacturing businesses were the most concerned about energy costs in the next 12 months, with 82 per cent of respondents expecting these to have a major effect on cost pressures. Despite being a major oil-producing country, 61 per cent of manufacturers in Mexico cited energy costs as a concern. Australia and Brazil, also energy-producing countries, were least concerned about energy costs, with 20 per cent and 23 per cent, respectively, expecting them to have a major effect.

Alex MacBeath, global head of privately held business services at the company, said: "The management of energy consumption is key to tackling global warming and the reduction of costs is the result. When we asked manufacturers what they were doing, almost two-thirds reported taking measures to reduce their energy consumption. They reported installing energy-saving lighting, motion detectors, insulation and measures to ensure that IT equipment was turned off while not in use, to cut down on consumption and costs. Over half of responding manufacturing businesses were investing in energy-saving plants and machinery."

Globalisation is being perceived as a threat to some manufacturing businesses. The report said manufacturers in Thailand, Australia and New Zealand saw globalisation as a threat rather than an opportunity. This indicates increasing concerns about greater competition from Asian manufacturers.