JCB boss calls for Britain to exit EU

LORD Bamford, chairman of North Staffordshire digger maker JCB and one of the Conservative Party’s most prominent business supporters, has said he favours the UK exiting the European Union.

The Conservative Government has pledged an in-out referendum on EU membership by the end of 2017 but the chairman of the Rocester construction equipment giant has made his own position clear.

Speaking to the BBC, Lord Bamford – who was made a Conservative peer in August 2013 – said that as the fifth or sixth largest economy in the world Britain could exist outside the EU.

He said an exit would enable the UK to negotiate as our country rather than being one of 28 nations.

JCB has had much success trading in non-EU countries such as Brazil, India and China but – as the UKTI’s Export Week kicks off – there are plenty of other West Midlands manufacturers who trade predominantly with the EU who will be concerned about the effect a so-called Brexit would have on their business.

But Lord Bamford is confident the need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth – at least in his own firm’s sector.

He was speaking to Midlands Today as JCB reported £303m in underlying earnings for 2014, compared with £313m in 2013.

Sales turnover was £2.51bn against £2.68bn the previous year, and machine sales were 64,028 (2013: 66,227).

Lord Bamford said:  “For different reasons each of the ‘BRIC’ markets of Brazil, Russia, India and China were sharply down in 2014.  However, the broad spread of our business enabled us to benefit from better conditions in North America, Western Europe and particularly the UK.”

The construction equipment market in Brazil dropped by 17% in 2014, Russia fell by 27%, India by almost 15% and China by 17%. Markets in the UK and North America grew by 30% and 13% respectively. JCB’s sales in North America grew by 23% – outpacing the market and making it a record year for JCB in North America, which is now the company’s third biggest market behind India and the UK.

Lord Bamford added: “Global market uncertainty has continued into 2015, though our home market of the UK remains a rare bright spot.  The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth.  Our resilient performance in 2014 demonstrates we are well placed to capitalise on improving trends as they emerge.”

Since 2010, JCB has created 2,000 new jobs at its 11 UK plants, boosting employment levels to 6,000. Globally, the company now employs 12,500 people.  JCB is currently investing in UK manufacturing by increasing production capacity at its World HQ in Rocester. The company also completed a 700,000 sq ft factory development in Jaipur in 2014 costing £62m and construction of a new €25m HQ for JCB Germany is also under way. 

Lord Bamford added: “We continue to invest heavily in all areas of our business despite the difficult markets, and this is the best demonstration of our confidence in the future.”