Manufacturers demand strategy re-think
Birmingham manufacturer Brandauer is calling on the government to provide more funding and long term support for the sector. Rowan Crozier, marketing director, told Insider: "The situation is critical – help is not reaching the small businesses which need support." His comments come as new research revealed 54 per cent of UK manufacturers thought the government's manufacturing strategy was performing badly.
The survey, from the Institution of Mechanical Engineers, polled 1,000 manufacturers across the country. According to the study, 54 per cent believe the government has got its strategy to rebalance the economy wrong, with the same percentage saying it is performing badly when it comes to manufacturing. Just 12 per cent believe it is performing well.
Crozier said long-term support was needed from the government to ensure the sector could uphold its position in re-building the economy.
"The primary issue for our company is a lack of funding," he said. "We have only received one funding package this year, from the Manufacturing Advisory Service – West Midlands. They've been a great support, but as a sector, we need more channels of continued help."
Branduaer, which specialises in contract presswork and stamping, exports about 70 per cent of its products.
Crozier said: "If we are going to grow ten or 20 per cent over the next year or so, we need access to funding. We need to explore emerging markets, conduct research and attend appropriate exhibitions, which isn't cheap.
"Previously, we had support available from Advantage West Midlands and Business Link West Midlands – now they've gone and unfortunately, the LEPs seem a bit slow on the uptake. They don't have the powers to administer funds yet, so there's definitely a hole that's been left."
In a separate poll conducted by the ICM, 73 per cent of manufacturers and 70 per cent of the public thought the government was more committed to the finance sector than to manufacturing.
John Wood, president of the Institution of Mechanical Engineers, said "Manufacturing has been the engine of the economy, helping to drive us out of recession. But the recent alarming slowdown in the sector’s growth means we now need to see government and industry pull out all the stops to get manufacturing back on track.
"This report shows that, worryingly, a majority of manufacturers think the government has the wrong strategy to make this happen.
"Manufacturers want to see the government’s rhetoric translated into action. This means introducing incentives for businesses to create new products and investing in the engineering skills that are crucial for Britain’s future."
By Stephanie Bartup, Midlands Correspondent