Manufacturers 'cutting costs to survive recession'

Bunzl, a distribution group that supplies a range of non-food consumable products, has lowered its overheads by adapting its throwaway materials, explained the Financial Times. Chief executive Michael Roney told the newspaper the firm has down-graded from branded products to private label or no-label items, adding a lot of business has come from the likes of Wal-Mart and Kroger, rather than higher-end retailers. "The discount chains appear to be holding up better than the middle or high-end. That's a sign of frugality," he was quoted in the publication as saying.

An article in the International News explained the manufacturing sector in Asia either cut costs or diversified in response to the recession and falling orders in an attempt to survive. The news provider reported an entrepreneur had commented: "If an industry is in trouble it should improve its efficiency and cut all unnecessary costs. If costs are not cut in time, the entire enterprise goes down."

However, Time noted not all attempts in trying to lower overheads are received in a positive way. It cited a number of "scandals" in China, including the use of melamine in milk and lead paint for children's toys. Aleda Roth from Clemson University studies quality control in global supply chains and was quoted as saying a company's success is not just about price, but also whether they can make the products safely.