The new Conservative/Liberal Democrat government has left the electronics and manufacturing industry thinking: “Maybe there will be some help for us, at last.”
Now they are waiting to see what David Cameron and Nick Clegg can deliver in way of shoring up the economic recovery and direct support for manufacturing and high tech businesses.
Electronics Weekly has returned to its panel of business managers, who are working in the electronics supply chain, and asked them for their first thoughts on the new Cameron/Clegg government.
A week ago the prospect of a hung parliament worried business managers in electronics companies.
Waking up today with a full coalition between the Conservatives and Liberal Democrats seems to have eased their concerns over instability in the markets.
“Countries like Germany, Netherlands, all run well with coalitions – why shouldn’t we?” asked one marketing manager.
“Debate & persuasion have to be better than ‘elected dictatorship’ and whips ramming through badly thought through ideas on strength of impregnable majorities,” he added. .
Most executives are hopeful of something more positive in terms of general trading conditions and support for manufacturing. But they still need to be convinced that the coalition will work effectively and they need for details on policy decisions.
“For example,” says one UK-based managing director, “The Liberal Democrats’ desire to become more 'Europe-involved' does not help us either, will not endear us to the US that's for sure.”
Another executive was weary about how the coalition would operate: “It leads to back-room negotiation and compromise. The country needs strong, decisive leadership and that is best achieved by giving one party a mandate to govern.”
But one manufacturing manager remains doubtful of any new support for the sector.
“All of the main parties have repeatedly promised to support manufacturing more after the election, I remain sceptical however," said the executive from a manufacturing company.
He believed the new government has few options. "They will have little choice because there will be enormous cuts in public spending which will affect jobs hence they will need to find ways to get these people employed - very similar to what happened when the Thatcher government was first elected back in the seventies,” he said.
While the prospect of Lib Dem, Vince Cable being business secretary surprised one manufacturing MD, he was prepared to wait and judge him on his policies as they emerge.
Would Peter Mandelson be a hard act to follow? “Not really,” he said.
“The Conservatives have gone further than the other parties in identifying the need for high speed broadband and the need to build on the renowned UK science base,” said the executive.
The main concern is that the new government should do nothing to threaten the recovery ion the economy which most managers see as fragile at best.
“But I don’t believe that the new government will put the recovery at risk because it wants to withdraw support prematurely. The real risk comes from not tackling the national debt and having our credit rating hit in the same way Greece has now seen,” said the manager in an exporting company.
“As in all things its about getting the balance right,” he added.