Manufacturers hold key to sustained recovery

MORE than 120 representatives of Yorkshire manufacturing companies focused on opportunities to grow their businesses at an event hosted by NatWest and Royal Bank of Scotland.

Directors of businesses ranging from long-established traditional manufacturers to new niche players heard from experts at the event at Tankersley Manor Hotel near Barnsley this week, about how the economic outlook may affect their firms, how export provides a strong route to growth and what support is available to them.

James Newman, who has worked in manufacturing in South Yorkshire for much of his career and is chairman of Finance Yorkshire and the Sheffield City Region Local Enterprise Partnership (LEP), said that manufacturing can spur economic recovery.

“There is no doubt that manufacturing is back on the government agenda.

“The economy needs rebalancing…we need to move from a very volatile financial services industry towards other sectors that can create real jobs,” Mr Newman added.

[VIDEO: 349]He said the LEP would focus on issues to help manufacturers such as closing the skills gap, creating centres of excellence and focused business support. Mr Newman said that Finance Yorkshire, the £90m investment fund, was working with Royal Bank of Scotland to provide support to manufacturers.

Roger Salomone from employers’ organisation EEF, told the audience that its Shape of British Industry Report showed a “very positive picture” for manufacturing.

“It is well placed for emerging markets and technologies. Innovative manufacturers have reinvented themselves to compete on quality and customisation rather than price.”

Helen Hickingbotham of NatWest, who spoke about exporting for growth, told the audience: “Firms do have concerns about exporting – it’s unfamiliar territory and there are increased risks. But banks have a key responsibility here, it’s about having somebody that works with you every step of the way. We can introduce expert help and give you a competitive edge.”

Royal Bank of Scotland group economist David Fenton, said: “The sector has staged a pretty impressive rebound, the UK manufacturing sector is back in business.

“Many companies have the cash but will they spend it? It boils down to do we have a sustainable recovery? The two key economic uncertainties now are the sustainable recovery and the amount of slack in the economy.

Lisa Leighton, manufacturing specialist at accountancy firm BHP Mitchells, told the audience that many companies often overlook their strategic planning but the downturn has stimulated that focus.

“Running a business is all about being in control, the three things firms should focus on are margins, overhead and cash. Good management information is key.”

A panel question and answer session at the event hosted by David Parkin of TheBusinessDesk.com saw a high proportion of the audience reveal that their firms were planning to invest in growth on the back of economic recovery.

Elliot Long of Shipley-based specialist sewing company Specialised Covers which employs 50 people and produces hand-stitched car seat covers for customers including Audi and Formula 1 teams, highlighted the skills gap for the textile industry and said if it is ignored, more work will go overseas.

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