Pushing the cause of our glorious manufacturers
IPROMISED I would again focus on manufacturing for my May article, following the announcement that Support UK Manufacturing (SUM), a diverse expert group of SME manufacturing owners, leaders, influencers and support service providers, were pushing forward with a petition for the appointment of a Minister for Manufacturing.
At the time of writing the count stands at 542 signatures. For it to attract the attention of government it requires 10,000 signatures to receive a response from the government and 100,000 signatures for it to be considered for debate in Parliament.
At 542 signatures this is a way off and requires the commitment of those in manufacturing to bring their voices to the fore. Support from the wider business community would also be welcome.
Manufacturers are struggling with increased freight, fuel and material costs, delays in deliveries and shortage of materials, due to the impact of Covid and Brexit to name but two significant events. Not to mention the skills shortage and lack of diversity.
Like hospitality, manufacturing is more than worthwhile saving, supporting and investing in. The stats around the contribution manufacturing makes to the economy are significant:
■ £183 billion output
■ 2.5m jobs
■ 51 per cent of all exports
■ 64 per cent of all UK R&D
■ 15 per cent of all business investment
■ 12 per cent higher wages than average
And the 99 per cent of all manufacturing businesses which employ less than 250 people are classified as micro or SMEs. These are the businesses of the future; these are the businesses going for growth and they are voices worth listening to and voices that need to be heard.
SUM are also putting forward an alternative way of bridging the skills gap currently being faced at a manufacturing production level which would not only assist in raising the levels of technical skills within the UK, but also enhance productivity as currently unskilled workers would become productive and “earn whilst they learn”.
They believe their suggestion of Training & Development Tax Credits would deliver rapid results in a practical and effective way and help bridge the skills gap and drive a broader up-skilling of the workforce, encouraging companies to train at a time when many are reluctant to do so due to the risk of poaching.
Andrea Wilson, director of Hone-All, the deep hole boring and drilling precision roller manufacturers, said: “We would like to propose that businesses are asked to create a syllabus of applicable skills which would include every functional aspect of the business including administration, goods in, production, inspection and despatch.
“Alternatively, we could be provided with a template syllabus, perhaps with room for modular variation, so that a proportion could be tailor-made to the businesses which would enable specialist training to be delivered as well as the more generic skill sets.
“Costs attributable to this training delivery are then recorded and claimed, in a similar manner to the current R&D Tax credit scheme and are offset against Corporation Tax bills.”
Certainly, we have to look at alternative ways of supporting the manufacturing sector and also raise its profile. We need to support a sector that touches our lives even if we don’t immediately recognise where it impacts us in our daily lives.
It is easy to assume that as an SME it is impossible to affect change. However, we do just that in our businesses every day. We innovate, challenge, demand and solve problems. It is therefore essential that as manufacturers we take any opportunity that presents itself to say what is needed in order for our industries to survive and thrive.
One such company is Eccleston & Hart, a business I had the privilege to meet last week. In 1837 the company, then known as
Hyde & Co, were in the jewellery sector.
In 1927 it was bought by Ray Eccleston and Joseph Hart, who continued to run it as a jewellery business until the beginning of Second World War when they began making products to support the war effort. In 1962 the company diversified yet again and now it is an established polystyrene block moulding business, specialising in high quality polystyrene (EPS) material manufacturing products for the packaging, construction, film, theatre, exhibition, display, media and graphic industries.
In 2018 the company was bought by Dr Josh Ahmed and is continuing the tradition of being a Greater Birmingham Chamber member, a position it has held for over 70 years.
Meeting the entire Eccleston workforce, their passion for manufacturing hadn’t diminished despite all the challenges.
Dr Ahmed said: “Manufacturing needs the support and investment from government. Rising material cost, fuel costs, freight costs, delays in material supplies are having a significant impact on the industry.
“We need at base level a reduction in VAT, business rates support and assistance with investment for capital equipment.”
The company have signed the petition for a Minister for Manufacturing and will encourage others to do the same. It was also a pleasure to meet Graham Middleton, from GM Polystyrene, a client of Eccleston’s for 30 years, who echoed Dr Ahmed’s call for support.
Eccleston’s are an example of so many of the fabulous businesses within the region. They are resilient, adaptable, passionate and committed, not only in the work they do but to the city and region in which they are based. They should be recognised, celebrated and supported. We all owe them a great deal.
The Chamber are committed to supporting the manufacturing industry, small or large and as president I shall continue to shine a light on the good, the bad and the ugly of what is happening to the industry.
Go to https://petition.parliament. uk/petitions/615294 if you wish to put your name to the petition for a Minister for Manufacturing and please do send me your thoughts and comments to president@ birmingham-chamber.com
Deb Leary is president of Greater Birmingham Chambers of Commerce and chief executive of Forensic Pathways
It is essential that as manufacturers we take any opportunity that presents itself to say what is needed in order for our industries to thrive and survive.