The solution? 16% of the 500 small and medium-sized companies surveyed by insurers NIG are looking to change business processes or products to deal with the rising cost of raw materials. More worryingly, 8% are considering relocating to cut their overheads.
Among businesses with £50,000 - £100,000 turnover, 24% are concerned about the need to cut costs due to the rising cost of raw materials. That rises to 33% for companies with £100,000 - £250,000 turnover, and stands at 26% for businesses with £250,000 - £1m.
"UK businesses continue to face a very challenging economic environment and a key aspect of this for many firms has been the rising cost of the materials they use to build their products," said Jon Greenwood, Managing Director at NIG. "The consequence is that adjustments are being made in other parts of their businesses to counter these cost pressures."
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