Does the UK need a manifesto for manufacturing as it moves into the pre-General Election period?
Cheng Yoe, managing director of Components Bureau is the latest executive from the UK's manufacturing sector to outline his ideas for change.
I think there are three key areas which need to be focused on which are finance, investment and incentives.
Taking finance first, all business – especially SMEs- could do with some sort of relief from the Shylockesque approach adopted by the banks at the moment. With interest rates currently at 0.5% yet banks lending at between 3-5% any party should look at underwriting sound business proposals.
Bad debt isn’t something that was discovered in 2008, it’s been an ever-present.
Also, the automotive industry was boosted by the scrappage scheme, so why not adopt a similar initiative for plant and machinery?
When it comes to growth you have to look no further than the success of schemes such as the Welsh and Scottish Development Agencies that were so instrumental in making those areas real strongholds of manufacturing in recent decades.
Although the politicans are unlikely to remember, by offering employment and rental incentives and inducements to large companies, we had global electronics manufacturers operating in Wales and Scotland as they took advantage of favourable rates and an infrastructure designed to help and not hinder business and employment.
When the incentive schemes were withdrawn, we lost out to the likes of Poland and other countries that were cheaper.
With designated economic incentives you have a scenario of regeneration not just within the electronics industry but as a consequence along the supply chain from employee to consumer. It’s a simple formula; if people are employed they can buy products and increase demand. They are also paying taxes that can fund these schemes.
When we are manufacturing, then, as a country we retain that wealth. We have, thank goodness, always retained our design excellence and therefore have an extensive and experienced manufacturing capability to offer the world - it’s one of the pieces of family silver that has been left in the cupboard and it’s now time to get it out on display again.
See: Manufacturing can be cornerstone of UK economy