EU membership fundamental to economic prosperity, say manufacturing experts
NORTH WEST manufacturers are inextricably linked to supply chains in the EU and leaving it would significantly impact on trade with our largest export market.
That was the resounding view from a panel of manufacturing experts at a panel discussion and dinner hosted by DLA Piper, PwC and RBS at Lancashire Cricket Club last night.
Juergen Maier, managing director at Siemens UK & Ireland Industry Sector, said that around 50% of all UK manufactured exports go to the EU, compared to the 2.8% that go to China.
“Should we leave the EU, trade in the EU would become very difficult. Why would Europe want to negotiate with the UK? Trade would suffer and there is no way emerging markets could catch up [to make up the difference].”
He added: “I think most in the business community are aligned on this but an accident could happen and we could end up with a referendum and out of the EU.”
PwC economist Andrew Sentance added that EU membership allowed the UK to punch above its weight in international trade negotiations with countries like China and the US.
“We are much better placed that way than trying to do it from outside on our own. In the EU we collectively account for 25% of world GDP versus 3% or 4%,” he said.
“We have been in the EU for 40 years and have to view it as fundamental to economic prosperity.”
The CBI’s regional director Damian Waters added that the time it would take to extricate the UK from the EU would create volatility and uncertainty.
“We have got that in microcosm now with Scottish independence, which is highly disruptive to business,” he said.
Discussions on exporting were an opportunity for Clive Drinkwater, North West regional director of UKTI, to highlight that this week is Export Week but he said there was still job to get that message across and that of the 250,000 businesses in the North West, just 10% are involved in international business.
Sentance said that while we have seen some positive export growth, there was “excessive expectation” from government as to what exports could deliver for the country.
“Exports have grown but so have imports because lots of exporters also import quite a bit. This is a long term issue. What drives success in manufacturing are long term things like innovation, skills, capacity to supply overseas, sales and marketing networks to distribute those products and bring them to market,” he said.
