Regeneration agency York-shire Forward today warned Bradford's manufacturing firms they could need to urgently review their production costs in order to compete in the global economy.

Research carried out by the agency revealed companies are incurring up to 60 per cent indirect costs on production support or administration, highlighting uncompetitive work practices.

And it showed many rely on a loyal but unprofitable customer base, and are reluctant to drop them even if they are heavily subsidised.

The research was carried out to identify how manufacturers can cut costs in order to compete more effectively with East European competitors.

Chairman Sir Graham Hall said the figures revealed a "startling failure" among businesses to identify new opportunities.

"The world's economy is developing at an extraordinary pace, but this research shows that this revolution could leave many of our companies behind," he said.