Insider Media Limited

West Midlands manufacturers will have "billions of pounds of investment" to take advantage of in 2012, the chief executive of Manufacturing Advisory Service - West Midlands (MAS-WM) told Insider. But one prolific manufacturer has warned that a skills shortage could set them back.

Simon Griffiths of MAS-WM said the investment flowing into the domestic automotive industry represents "significant opportunity" for Midlands manufacturers.

He added that bringing production back to the UK is a trend that is likely to continue in 2012.

"We have seen sterling consistently 20 to 30 per cent more competitive than five years ago and with fuel prices climbing significantly, this all points to a growing need to source products closer to home," he said.

However, Gerry Dunne, managing director of Westley Engineering and chairman of the Midlands Assembly Network (MAN), told Insider that the shortage of skilled workers was "a continual problem" for many companies.

"This will only get worse with large companies expanding within the UK and attracting what talent there is out there," he added.

"I’m all for the ‘growth’, as opportunities come from firms in the country doing well, but the downside is some of our staff and apprentices can be poached. It also drives the rates of pay up, which can price us out the market before we’ve even started."

Dunne said that growth would not be as significant as in previous years following the recession.

"The uncertainty within the euro and eurozone will be on the agenda for most of next year, with experts on all sides voicing their opinions. However, I believe we are too small to influence it and can't see it having too much of an impact on manufacturing, especially in the short period," he said.

Dunne agreed with Griffiths saying he had witnessed "tremendous growth" within the automotive sector, which looked set to continue into the new year.

Griffiths also urged companies not to "talk ourselves back into recession".

"Let's get the foundations in place, let's make sure we are as efficient and 'cost' competitive as possible and let's go out there and tell everyone how good we are at innovation, design and world class manufacturing," he said.