Manufacturers urged to cut costs, not corners
The number of products recalled last year rose by 27 per cent to nearly 300, with faulty food and electrical products being the worst culprits.
Tony Swallow, director at insurance brokers and financial advisors, Rowlands & Hames, warned that the increasing consumer demand for cheaper brands and suppliers needing to cut costs could have an impact on consumers and manufacturers.
He said: “Pressure to keep costs down is driving the trend for more product recalls, not just from manufacturers and suppliers, but consumers as well. Loss of turnover, damage to consumer confidence and potential loss of supply contracts are real risks. Issuing a product recall is a huge step and is not one to go into alone.”
Recalls can affect the smallest through to the largest organisations in the world. Confectionery maker Cadbury, estimated a recall of one chocolate bar to cost the business £20 million, with Apple also famously once fearing a global recall cost of $1.5 billion when the iPhone 4 experienced problems in the early stages after it went on sale.