Manufacturing has to adapt to meet Chinese challenge

THE UK’s manufacturing industry and its supporting supply chain need to come to terms with Chinese production methods and adapt business models to account for it, a West Midland industrialist has said.

Steve Cooper, managing director of Walsall-based Majorfax, said attitudes needed to change because the UK could no longer compete effectively in the high-volume, low-margin manufacturing sector.
 
Mr Cooper, who has 25 years experience of the industry, said there was no doubting China was now a world power in manufacturing.

“The Chinese have certainly stolen the UK’s crown. They are able to produce to the same quality and deadlines as we once did but at a price that is far more competitive than the UK could ever achieve,” he said.

“It’s a real shame but it’s the way it is. We need to change the way we think and change the way we do things. We need to find a new perspective if we’re going to be successful in the next 25 years. We need fresh blood in the manufacturing sector and we need people to come in who know how to deal with overseas suppliers.”
 
Mr Cooper said the last two-and-a-half decades had seen in the UK a decline in capacity, linked closely to the erosion of the car and rail industry and the emergence of new materials, such as plastics, carbon fibre and composites.

“We saw very early on that the writing was on the wall for UK manufacturing but knew that people still wanted to buy from UK companies,” he said.

“We set about building links, making connections in Eastern Europe and China and getting to know how business is done in these parts of the world. It’s taken us a long time but we’re now really seeing the benefits and have survived the recession by sourcing great quality castings at competitive prices. I think we will see more and more companies following our lead as they develop their understanding of how to manage the supply chain.”

Mr Cooper said his firm had found that even though the decline of the UK manufacturing base has been widely publicised over the last two decades, people still thought they could place an order and take delivery two weeks later, with the product being manufactured in the UK.

“They can’t – not if they want to pay the price they’d like to. Majorfax work hard with buyers to smooth the transition from UK to overseas castings purchase by advising about how the process works and how long it takes. I’d like to see more companies embracing this,” he said.
 
As well as sourcing materials and production, one of the key changes in the industry is the growing need for stock holding and supply chain management skills.
 
“At Majorfax, we’re increasingly being asked to take on the role of managing the supply chain for our clients across the construction, domestic heating, power generation and bulk handling industries by incorporating their lead times into our materials management plan,” he said.
 
“By investing in warehousing facilities, we are now able to offer customers the best possible storage solutions for their bulk materials, in a safe controlled environment.
 
“Our knowledge and experience of overseas markets enables us to make recommendations on the best possible solution for our customers needs.”
 
He said that in essence, customers needed to have trust in their suppliers, must be clear of their expectations and be prepared to work with them effectively and in partnership.
 
Mr Cooper said the key to sustaining UK manufacturing lay with evolving the next generation of buyers and procurement teams to take into account purchasing components from overseas for use in their manufactured goods.  

He said he also believed the UK would still have a manufacturing base.
 
“In most cases, on cost alone, foreign manufacturing will continue to dominate with the emergence of China and continuous development of foundries in Eastern Europe.  However, I don’t think it’s all doom and gloom and I’m sure the UK will still have a foundry industry in 25 years time albeit smaller and a bit more specialised,” he said.