Manufacturing Review 2015: UK must stay in the EU say firms
AN overwhelming number of manufacturers in the West Midlands do not want to see the UK exit the European Union – and the sooner the issue of a referendum is resolved the better it will be for the economy as a whole.
TheBusinessDesk.com and international law firm Squire Patton Boggs have collaborated on a new report gauging levels of confidence within the manufacturing sector and what businesses in the region want to see happen over the course of the next 12 months.
To download a copy of the new report click here
The survey found that a conclusive 83% of manufacturers want to stay in the EU; a statistic borne out by an almost exact same percentage in an independent survey conducted by EEF, the manufacturers’ organisation (which found that 85% of companies want the UK to stay in the EU).
Richard Halstead, West Midlands Regional Director, EEF said the figures were even more conclusive if you looked at just large businesses – those with 250 employees or more – where the figure rises to 90%.
Halstead, who took part in a special round table event held at the offices of Squire Patton Boggs in Birmingham, said manufacturers – in common with most other businesses – needed clarity on the European issue, especially with the Eurozone being such as important trading partner for firms in the region.
“The majority of businesses say that they want to stay in Europe. Uncertainty is causing a lot of problems at the moment and the sooner we can have the referendum and get the answer the better,” he said.
Dr Richard Hutchins, Director – Jaguar Land Rover Programmes, Warwick Manufacturing Group, was another senior business figure to participate in the round table debate. He said it was similar story for the academic community, where it would be difficult to find any university in the country that would vote to leave the European Union.
“Universities – as providers of higher education skills training – are among the biggest exporters of any sector in the country. Leaving the EU would have (serious) implications,” he said.
Fellow panellist, Rupert Boddington, Senior Relationship Director, RBS said he thought there was a real challenge to demonstrate what was good for business and good for manufacturing, was good for the man on the street.
“I think that it will be really easy for the ‘no’ camp to connect with people on an emotional basis. My suspicion is that the outcome could ultimately prove to be much tighter than has recently been predicted,” he said.
Many manufacturers rely on European funding to support their operations, especially in the field of research and development and withdrawal from the EU could threaten much of the innovative work that the UK manufacturing sector is famous for.
The argument was succinctly put by Chris Reeves, Commercial Director, MIRA – another panellist at the event.
He said: “We rely on European funding for some of our innovation and we would obviously not want to see that put at risk. And I’d agree that the lack of certainty around Europe that we’re currently witnessing is damaging.
“The uncertainty is not just damaging to the European partnership but it’s also damaging to global wealth creation and inward investment with the UK.”
Simon Garbett, partner, Squire Patton Boggs in Birmingham, said while talking with manufacturing clients had demonstrated just how red tape surrounding European legislation was frustrating and hindering growth for many companies, his feeling was that most companies remained broadly very supportive of continued EU membership – although many wanted that membership “on better terms”.
“My fear is that negative issues surrounding our European membership will be whipped up by those with a vested interest or agenda in the months before the referendum – and if this resulted in a ‘no’ vote it could ultimately prove highly detrimental for UK plc,” he said.
“My hope is that the referendum will be done and dusted both quickly, decisively and cleanly – so that normal business can be resumed with all potential problems for manufacturers arising from an EU exit removed.”
What are the views of manufacturers in other areas?
