Industry 'up to global challenge'

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Its survey says the long-term strategy of moving into higher-value production is paying dividends.

"This survey paints a positive picture of how manufacturing companies have adapted to the challenge of the global environment," said EEF chief economist Steve Radley. "Instead of competing on price alone, they are adopting a range of strategies to take advantage of emerging markets."

Fewer UK manufacturers are reporting a significant impact from price competition in key markets, the EEF added.

Fewer than half the companies surveyed reported that higher value-added goods from competitors in countries such as China are posing a threat.

Only 3% saw a "significant threat" from emerging markets, down from 12% in 2004.