Texts for oral translation

TEXT 1

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Uk manufacturers fear lagging behind global competition

Two thirds of UK manufacturers developed new products in the last three years as firms feared falling behind competitors, a survey suggests.

Companies most at risk from economic challenges, particularly those in oil and gas supply chains, were increasingly forced to diversify away from their troubled sectors, said manufacturers organisation EEF, which surveyed 273 company directors.

However, firms reported mixed success, adding to fears the UK is lagging behind other developed nations when it comes to innovation. Almost 30% said the amount of money they invested to create new products was not enough to keep pace with competitors.

Separate data from the Office for National Statistics suggests the UK’s R&D spend is only 1.1% of GDP, compared to 2.02% in Germany.

“Manufacturers are finding that the results they achieve do not always match their ambition. Shortages of expertise, equipment and finance are holding them back,” said Lee Hopley, EEF’s chief economist. “Every additional pound invested in developing the products and services of tomorrow can help get the UK closer to its goal of having a more productive economy.”

Companies in the oil and gas sector were hit particularly hard last year by a slump in oil prices, which saw a barrel of Brent Crude drop from $110 to $48 in just six months.

This led to a fall in demand for new machinery, hitting companies that make electrical and mechanical equipment, said the EEF. Some were forced to reduce prices, which squeezed the business at a time when the strong sterling was also reducing profit margins.

A third of respondents said boosting exports is a priority for their company, as growth potential in the UK remains flat. The Bank of England expects the UK economy to grow 2.8% this year, although this is expected to moderate to 2.6% in 2016. Construction output recently posted a 0.5% quarterly decline, while services output, which accounts for around three quarters of UK output, grew by 0.7%.

The Telegraph, August 24^th 2015

Useful terms and expressions

• to lag/fall behind (competitors) – отстать от конкурентов

• to be at risk – подвергаться риску

• expertise – профессиональные знания, наработки

• to squeeze – создавать проблемы, ставить в сложное положение, вытеснять

TEXT 2

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Food producer insolvency triples amid supermarket price wars

The number of food producers that have gone bust have tripled over the last five years as a result of the supermarket price wars, a report said.

A survey by top 10 accountancy firm Moore Stephens said 162 food production companies fell into insolvency last year, more than treble the 48 insolvencies in the sector in 2010 and 11% more than just a year ago.

It blames the supermarket sector's ongoing price war, sparked by the growth on discounters Aldi and Lidl, which has seen major players such as Tesco and Asda cut prices to protect market shares.

Moore Stephens said food suppliers are "bearing the brunt of the on-going supermarket 'price war' as their profit margins are squeezed by big supermarket chains trying to offer consumers the lowest prices possible whilst maintaining their own profit margins".

It added that the squeeze on prices is set to continue as discounters gear up plans for expansion.

Earlier this year Aldi said it plans to open 80 new stores this year, creating 5,000 new jobs. The German-owned supermarket runs over 600 stores in the UK, and aims to boost this to 1,000 by 2022.

Duncan Swift, partner and head of food advisory at Moore Stephens, said: "With the likes of Aldi and Lidl announcing further plans for expansion, competition between budget and traditional supermarkets is only going to heat up."

He added: "The extreme buying and retail pricing strategies of big retailers mean smaller food producers are struggling to stay afloat.

"Food supplier insolvencies are still rising as small producers continue to be the major casualties in the supermarket price war."

Mr Swift added that with over 70% of UK food suppliers produce "going across the buying desks of the UK's top 10 supermarkets, the buyer power of supermarkets remains enormous".

The Independent, April 11^th, 2016