TheBusinessDesk.tv: Collaboration key to drive manufacturing

INVESTING in skills in the manufacturing sector and improving collaboration between companies and educational establishments is essential to drive innovation and economic growth, a Yorkshire audience was told.

And leading experts believe research and development is also crucial to help manufacturers remain ahead of their competition, both in the UK and overseas.

Speaking at yesterday’s The Business of Manufacturing event, industry experts said they were optimistic about the prospects for the manufacturing sector but said there were challenges, including a lack of capital allowances, getting more women to work in the sector, and the obstacles encountered when trying to win contracts because of complex procurement processes.

Panellists at the event, organised by Marketing Leeds, were Juergen Maier, managing director of Siemens industry sector operations in the UK; Mark Ridgway, managing director of Group Rhodes; Graham Bowland, chief executive of Surgical Innovations; James Averdieck, founder of GU Chocolate Puddings; and Steve Pateman, head of commercial banking at Santander.

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Mr Pateman claimed Santander was lending to the “waifs and strays” in the manufacturing sector who had been turned down for funding by other lenders.

He said many owners and directors of manufacturing businesses were looking for finance on terms which meant they didn’t have to lose control of the company. But he admitted the banking sector had lost its ability to forge personal relationships between company executives and those making lending decisions.

Mr Ridgway said although the formation of enterprise zones would give manufacturters some perks such as rate reductions, more needed to be done to give manufacturers capital allowances to encourage growth.

He also questioned why there weren’t more female engineers working in manufacturing.

Mr Maier said Siemens had chosen Leeds as the location for its latest factory because of the strength of the region as a manufacturing hub.

Although he described R&D at companies as “excellent”, he said more could be done to collaborate between companies and universities to boost R&D even further.

Mr Bowland, who runs Leeds-based surgical device manufacturer Surgical Innovations, also called for better collaboration between manufacturers themselves, which in turn would aid innovation.

And he said despite the ongoing economic uncertainty, there were opportunities for companies that had a niche and were fleet of foot.

The panellists agreed that more could be done to improve the quality of engineering graduates looking for work. They also welcomed a greater focus on apprenticeships by the Government.

Opening the event, Leeds City Council chief executive Tom Riordan said the Leeds City Region and wider Yorkshire region was taking advantage of government initiatives to export more products abroad.

Mr Riordan also said local enterprise partnerships in the region were also helping to co-ordinate work to drive economic growth through manufacturing.