Chamber chief in plea to use region’s manufacturing expertise
SOURCING products from manufacturers in Yorkshire instead of looking overseas could save companies thousands of pounds a year, according to a Chamber of Commerce chief.
Ian Williams, spokesman for Leeds Manufacturing and policy director at Leeds, York & North Yorkshire Chamber of Commerce, said there were “fundamental ways” manufacturing businesses can help themselves and each other towards growth.
Mr Williams said: “Manufacturing and local enterprise will be key to the continued regional recovery where there are already encouraging signs.
“Leeds is the second largest employer outside London for manufacturing with 36,000 people employed in the sector and a manufacturing workforce of 148,600 in the wider Leeds city region.
“Many firms have over the past decade become used to sourcing products overseas, or from suppliers around the UK, and we often forget about, or are unaware of the vast range of manufacturers and products that they produce right here in Leeds and the other towns and cities in Yorkshire.
“It won’t always be possible to find the very specialised widget your firm needs on your doorstep. But if we take the time to look around and review our supplier lists, as companies like furniture designer ABF Europe have found, there is a great deal more we could buy from within the region, keeping trade circulating at home and bringing many other business benefits.”
CASE STUDY
ABF Europe, a furniture design company, has announced that it will in future be sourcing new suppliers from within Yorkshire instead of abroad.
The company, which is based near Wetherby, has taken the strategic decision to eliminate what it has described as the “logistical nightmare” of overseas sourcing.
Founded in 2000 by creative director Mike Prendergast and sales director Darren Buttle, ABF Europe has annual turnover of £2m and employs 15 people.
ABF previously used a far eastern company to supply the metal work for its furniture. While the company was satisfied with quality and cost, the arrangement meant that items had to be ordered 16 to 20 weeks in advance resulting in large amounts of stock being held.
A review carried out by the Manufacturing Advisory Service identified two new primary suppliers based in Yorkshire, one of which has just received an order valued at £250,000. The review also identified three back up suppliers.
Mr Prendergrast said: “This has moved us from an onerous/high risk stock and work in progress to a ‘Just in Time’ situation. The new arrangement will also enable us to supply customers with bespoke orders and colour.”
ABF will continue to use its Taiwanese contact to supply some of its growing export business, which currently accounts for 15% of its turnover, to countries around the world including USA, Spain, New Zealand and Australia.
“Through MAS we have saved a huge amount of time and are proud to be able to tell our UK customers that our goods are made in this country and, even better, in Yorkshire.”
Mr Williams said a weak pound had made UK sourced products increasingly competitive over the past few years and freight costs were running at the highest level for years.
“This, coupled with the benefits of much shorter lead times, better quality control, improved payment terms and lower transportation costs means there are a number of compelling reasons to be using even similarly priced locally sourced products,” he said, adding that environmental factors were also important.
“So we’re suggesting a real nuts and bolts route to speed the recovery and avoid uncertainty – simply look to shop locally and regionally for your materials and product components,” Mr Williams said.
“There will be specialist products that cannot be sourced here but don’t underestimate the number of companies that could be making your components and raw materials right here.”
Bodies such as Leeds Manufacturing, The Chamber, Leeds City Council and organisations such as the Manufacturing Advisory Service (MAS) are on hand to help businesses source locally.
