Manufacturers urged to target growth markets

THE manufacturing sector can continue its recent renaissance, but needs to innovate and target growth markets such as India and China, an expert from industry group EEF said.

Speaking at an event in Bolton organised by RBS and NatWest, Lee Hopley, chief economist at manufacturers’ group EEF, said the sector had seen six consecutive quarters fo growth and was creating jobs.

She warned though that there are a number of barriers to growth as well as short-term challenges in certain areas of industry, such as defence, caused by the Government’s spending cuts.

She said: “Overall we have seen a bumpy recovery, but manufacturing has been the exception with six consecutive quarters of growth of around 1% – you have to go back several decades to see this happening.

“However output is still behind the pre-recession peak, so we must not get too carried away.”

The key driver of growth she said was international trade: “This is very much an export story, with companies tapping into growing economies like China and India.”

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“There are signs that companies are now confident enough to start recruiting,”

After cut costs and overheads during the the recession she said companies were now looking to innovate with new products and services and invest in new machinery.

“Innovation can be in new processes, not just new products,” she said.

Collaboration between big industrial groups and their supplier was another area for development highlighted in the EEF’s Shape of British Industry report, which it produced with NatWest/RBS.

“Manufacturers are collaborating right down through the supply chain on product development, forward planning and even training, and that’s really helping them be successful,” she said. 

Around 150 manufacturers from across the region attended the forum at the Reebok Stadium, and heard advice fon international trade from UKTI North West representative Ian Parker and financial tips from accountants CLB Coopers.

Steve Sankson, regional director of NatWest commercial banking in Greater Manchester : “I can’t recall a time when manufacturing was getting such a high profile, it’s clearly central to the Government’s agenda.

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“In the 25 years I have been in banking sector there has been a big change in attitude, In the 1980s manufacturing was in the doldrums, and written off as slow, uncompetitive, unionised, it was pretty much the death knell.

“Now we are talking about our world class manufacturing base which is centred around innovation and added value.

“I think it’s an exciting time for the sector in the North West – we have such a diverse range of manufacturers in this region.

He said the relationship between banks and manufacturers was key and that it is vital that companies in the sector know that funding is available.

“Manufacturing is a crucial sector for us and we’re determined to play our part in the growth of the sector in the UK.” 

Mark Campey, managing director of Knowsley-based food counter manufacturer Counterline told the audience of his company’s success in export markets which has allowed it to grow sales and more than double the size of its workforce.

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He said his first step had been into the Netherlands, which with the help of UK Trade and Investment had given Counterline the confidence to look towards the Middle East then the Far East with Singapore and China.

“UKTI has been a huge help to us here and overseas. I’ve heard it described as Britain’s best-kept secret and I agree with that.

“I think when you are considering international growth you have to have a plan, but with the ability to be a little bit flexible within that. “

Having grown staff numbers at Counterline from 60 to more than 140 since joining a buyout team in 2006,  Mr Campey believes trebling sales to £30m in the next five years is a realistic goal.