Manufacturers are being forced to put customer satisfaction above profitability while battling their fourth recession in ten years.

A new survey reveals that although three quarters of businesses are finding it hard to satisfy customer expectations, this is considered more important than profits and remains a key priority for 2002.

Despite their sharpest downturn in the past 12 months, manufacturers were fighting back and battling for new business, according to the survey the British Chambers of Commerce and HSBC.

Covering more than 14,200 businesses, it showed almost 80 percent of manufacturers see managing change and continuous innovation as the key criteria for beating the slowdown and staying ahead of the competition.

It also showed that 73 percent of firms intend to introduce new products or services in the next 12 months and, despite the impact of foreign competition, 47 percent still plan to compete in European and other international markets.

The survey showed firms are battling to attract new business.

The euro also finds favour with the majority of those surveyed.

Almost two thirds believe that if adopted by the UK, it would help them. Those most in favour of the new currency are manufacturers.

David Lennan, director general of the British Chambers of Commerce, says "The UK has some cracking manufacturers and this survey provides clear evidence that firms are doing what they can to survive the slowdown in global demand".

For copies of the Success in Business Survey 2001 call 0800 34 34 35.