Spike fuelled by cheap goods and supply chain disruptions, says RPC
UK product recalls jumped 27% in 2011, the second year in a row to see record-breaking increases, according to new figures.
Research by City law firm RPC (Reynolds Porter Chamberlain LLP) shows that 291 product recalls were recorded in 2011, compared to 229 in 2010.
Product recalls are issued after a health and safety risk or a major design or production flaw has been discovered in a product.
When RPC first collated comprehensive recall figures in 2003, there were only 143 for the whole of the year.
RPC said last year’s increase was driven by a jump in recalls of faulty electrical consumer products, up 45% from 40 in 2010 to 58 in 2011, along with a doubling in the number of recalls involving food products from 35 to 70 last year.
RPC partner Stuart White said the increased recalls could be driven by a combination of cash-strapped consumers buying cheaper goods and the supply chain disruptions resulting from last year’s Japanese and Thai disasters.
He said: “The increase this year could have been fed by high consumer demand for cheaper brands, particularly in the case of bigger ticket household products like cookers or freezers. It may be that some white label or smaller producers have had to source cheaper suppliers to be competitive.”
“From natural disasters to political unrest, the last 12 months has seen substantial supply chain disruptions. These will inevitably have put pressure on manufacturers who may well have turned to third or fourth tier suppliers to cope with the supply shortage.”
“Acting swiftly is important when dealing with any product recall situation. Delaying a recall can have disastrous consequences for a brand’s reputation, which is sure to reflect on the business’s balance sheet.”
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