British manufacturers are embracing e-business and look set to overtake the US.

A report, Manufacturing with a Small e, by leading business information group Deloitte & Touche, gives an account of UK and US attitudes towards e-business among manufacturers and assesses the future of e-business in both countries.

Britain holds a small lead over the US in the use of web sites to buy, sell and to market products.

But British manufacturers may be held back by their staff while US employees were found to be more enthusiastic towards innovation.

Senior partner of Deloitte & Touche South East regional office Graham Pickett said:

"The popular view that there is an e-business gulf is wrong. Britain does not lag behind the US in terms of e-Business strategy or the volume of business conducted.

"Even where US manufacturers lead, the extent of their advantage is small and in the short term, in areas such as procurement and supply-chain management, there is a growing perception that Britain will overtake the US."

On both sides of the Atlantic, less than ten per cent of manufacturers' total sales volumes can be attributed to e-business channels.

Britain is less optimistic than the US with 19 per cent of manufacturers forecasting between ten and 19 per cent of sales through e-business in one year's time, while 18 per cent of US companies predict a figure of between 20 to 29 per cent.

Mr Pickett said: "Manufacturers are aware they need to make a leap of faith. CEOs and board members must see through the hype surrounding e-business and implement appropriate change.

"The cost/benefit analysis of e-business is weak and poorly formalised, but all manufacturers understand that financial justification, even after implementation, will happen.

"If British firms are to increase their competitive position on a global stage, then the e-business message is 'stop talking and start doing'."