CBI chief uses West Midlands visit to call for new national industrial strategy
THE Government must support the creation of new, highly skilled jobs outside London, the head of the CBI has said during a visit to the West Midlands.
CBI Director-General Carolyn Fairbairn said efforts to diversify the UK’s economy to make it more resilient to economic shocks also had to be a priority.
She used a visit to the University of Warwick to call for the introduction of a new national Industrial Strategy that will see industry and politicians collaborate on a variety of projects.
She said: “Every manufacturing sector should have a plan for its future and many already do – we would suggest that each plan addresses these three questions.
“First, is the sector strategic for the UK? Second, is the sector currently globally competitive, and if not why not? Does the UK have a competitive advantage?
“Third, what actions could government and business take to make it more competitive?”
She said solutions may be about enhancing competition to encourage new players onto the scene, developing skills, improving infrastructure, targeting R&D and supporting digital capabilities.
She said the latter was critical as manufacturing was evolving, with innovative new techniques and production methods being introduced all the time.
“In the years to come, as digital technologies increasingly define what we make and do, I think we’ll see more creative and technology companies doing things which could be classed as ‘manufacturing’,” she said.
However, she said more manufacturers had to be encouraged to embrace the new technology otherwise firms risked being left behind.
Ms Fairbairn also described the current state of UK manufacturing as a ‘tale of two sectors’, with the declining steel industry in one camp and the buoyant automotive sector in the other.
“Steel gives a sharp example of where we didn’t think long term. Where the answers didn’t come until it was too late,” she said.
“Yet the automotive industry provides the evidence that a clear, collaborative approach works. The industry came together, identified barriers holding back its productivity and put its top three proposals to Government.
“Government acted and deserves great credit for doing so. The results have been astounding.”
