News - Midlands
Nothing lasts forever - just ask Midlands manufacturers. Making things was once the bedrock of the region's economy. Now companies that once strode the region like giants, stumble as they try to find a new place in a globalised world.
Yet the sector remains a dynamic one. Manufacturing is often misunderstoodx85 public opinion is of a small, declining sector, owned by foreigners and on the brink of being totally offshored to China.
Britain, and in particular the Midlands, can still, however, claim to be manufacturing-based economies. There are more than 150,000 businesses that make things in the UK, turning over £3500bn. Last year they accounted for 60 per cent of UK exports, worth £3220bn. And 21 of the FTSE 100 manufacture goods, including pharmaceuticals, machinery and food.
In the West Midlands manufacturing accounts for 23 per cent of all full-time jobs and 16 per cent of all jobs. Around 27 per cent of Regional Gross Value Added (GVA) is down to the sector. There's life in the old dog yet.
But change and adapting to a global market is now essential.
Dr Bryan Jackson, who was managing director at Toyota Manufacturing (UK) for 14 years and who now chairs the East Midlands Development Agency (Emda) says: "Manufacturing in the UK isn't dying - it's changing.
"It remains a vital part of the economy and currently accounts for 15.9 per cent of output and 13.2 per cent of employment.
"We're all aware of the well-publicised decisions by some companies to source production from outside the UK, and the knock-on effect this has had on smaller firms. But such challenges also provide opportunities." Indeed, the single biggest issue for many businesses remains that of global competition, which has led to a staggering 30,000 jobs lost each quarter in the sector since 2003.
There are some grounds for optimism, however. The latest Regional Trends Survey from the CBI and Experian shows that the total volume of orders rose for the third quarter in a row, and that output growth continued.
The star performer of the survey was the West Midlands, particularly its metals and engineering industries. The region has suffered in recent years, but over the last quarter it has become one of the most upbeat in terms of overall business and export confidence, output expectations and investment intentions.
Manufacturers, says the survey, are at their most optimistic about their export orders since 1995.
In the East Midlands manufacturing business numbers and employment are still falling. However, authorities such as the Department for Business, Enterprise and Regulatory Reform (DBERR, formerly the Dti) and the CBI say there may be an underestimate of the employment and value of manufacturing - up to 20 per cent according to DBERR - because not all manufacturers register themselves as such or because of the increasing tendency of manufacturers over recent decades to outsource "service' jobs such as maintenance, cleaning and security.
Britain is still the envy of the world in marine, aerospace, communications and pharmaceutical manufacturing, and the Midlands is home to many of the leading lights in these sectors.
While their production elements remain under intense competition from emerging markets, there is now evidence that the Midlands can attract and keep high-value manufacturing with significant companies establishing facilities in the UK.
To remain competitive, they need support from the government, says Andrew Reynolds Smith, executive director of Birmingham engineering group GKN.
He adds: "Businesses must be strong to compete in export markets and they need support from government to break into them.
UK Trade & Investment does some good work and it promises to do more, but it needs to deliver.
We all need to pull together - industry and government, employers and employees, businesses and education, to ensure a successful future for manufacturing."
The Midlands: a global brand?
Nothing lasts forever - just ask Midlands manufacturers. Making things was once the bedrock of the region's economy. Now companies that once strode the region like giants, stumble as they try to find a new place in a globalised world.
Yet the sector remains a dynamic one. Manufacturing is often misunderstoodx85 public opinion is of a small, declining sector, owned by foreigners and on the brink of being totally offshored to China.
Britain, and in particular the Midlands, can still, however, claim to be manufacturing-based economies. There are more than 150,000 businesses that make things in the UK, turning over £3500bn. Last year they accounted for 60 per cent of UK exports, worth £3220bn. And 21 of the FTSE 100 manufacture goods, including pharmaceuticals, machinery and food.
In the West Midlands manufacturing accounts for 23 per cent of all full-time jobs and 16 per cent of all jobs. Around 27 per cent of Regional Gross Value Added (GVA) is down to the sector. There's life in the old dog yet.
But change and adapting to a global market is now essential.
Dr Bryan Jackson, who was managing director at Toyota Manufacturing (UK) for 14 years and who now chairs the East Midlands Development Agency (Emda) says: "Manufacturing in the UK isn't dying - it's changing.
"It remains a vital part of the economy and currently accounts for 15.9 per cent of output and 13.2 per cent of employment.
"We're all aware of the well-publicised decisions by some companies to source production from outside the UK, and the knock-on effect this has had on smaller firms. But such challenges also provide opportunities." Indeed, the single biggest issue for many businesses remains that of global competition, which has led to a staggering 30,000 jobs lost each quarter in the sector since 2003.
There are some grounds for optimism, however. The latest Regional Trends Survey from the CBI and Experian shows that the total volume of orders rose for the third quarter in a row, and that output growth continued.
The star performer of the survey was the West Midlands, particularly its metals and engineering industries. The region has suffered in recent years, but over the last quarter it has become one of the most upbeat in terms of overall business and export confidence, output expectations and investment intentions.
Manufacturers, says the survey, are at their most optimistic about their export orders since 1995.
In the East Midlands manufacturing business numbers and employment are still falling. However, authorities such as the Department for Business, Enterprise and Regulatory Reform (DBERR, formerly the Dti) and the CBI say there may be an underestimate of the employment and value of manufacturing - up to 20 per cent according to DBERR - because not all manufacturers register themselves as such or because of the increasing tendency of manufacturers over recent decades to outsource "service' jobs such as maintenance, cleaning and security.
Britain is still the envy of the world in marine, aerospace, communications and pharmaceutical manufacturing, and the Midlands is home to many of the leading lights in these sectors.
While their production elements remain under intense competition from emerging markets, there is now evidence that the Midlands can attract and keep high-value manufacturing with significant companies establishing facilities in the UK.
To remain competitive, they need support from the government, says Andrew Reynolds Smith, executive director of Birmingham engineering group GKN.
He adds: "Businesses must be strong to compete in export markets and they need support from government to break into them.
UK Trade & Investment does some good work and it promises to do more, but it needs to deliver.
We all need to pull together - industry and government, employers and employees, businesses and education, to ensure a successful future for manufacturing."