Bernard Ginns: Revival in manufacturing requires a long-term view

CHRIS Rea, the tenacious boss of one of South Yorkshire's best engineering businesses, believes that the only way for government to truly support manufacturing is to create a 25-year plan with cross-party backing.

The managing director of Rotherham-based AESSEAL told the Yorkshire Post this month he was "depressed" about the outlook for manufacturing, because there is no understanding in our political class of how to develop the industry. He may well be right. It will take more than pro-manufacturing rhetoric to rebalance our economy away from the volatile financial services sector to one in which Britain becomes a net exporter.

In London, the view among financial commentators is that manufacturing will at least stabilise and could enjoy a modest revival over the next few years if the pound stays competitive and other factors remain benign. This would be of obvious benefit to a place like Yorkshire with its solid manufacturing base.

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But those commentators doubt whether this trend will be enough to close the gap between the South and the North, large parts of which face extraordinary challenges in the coming years as widespread public sector spending is sharply wound down.

The key to future prosperity for the UK still rests with the services sector, according to people like Toby Strauss, the chief executive of York-based Aviva UK Life.

He cannot see the manufacturing sector growing substantially in the UK.

While acknowledging that Britain is home to some very successful specialised engineering businesses, he said: "The challenge for them will be competing with the Chinese and Indians as they continue to ramp up their levels of expertise."

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My view is this: if our engineers and manufacturers can increase their investment in research and development and push harder on sales, I am confident that they will be able to stay ahead of international rivals.

AS WELL as being home to AESSEAL, Rotherham is home to a growing number of quality engineering businesses.

It could see more moving in soon if new figures from the town's regeneration office prove a reliable indicator.

The statistics show an increase in business inquiries and demand for space in business parks and the town centre.

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These come after a survey put South Yorkshire at the top of the league for inward investment in the region.

Rotherham is already home is the impressive Advanced Manufacturing Park, which has attracted world-class names to the town, including Rolls-Royce which is investing 25m in the forthcoming on-site Nuclear Advanced Manufacturing Research Centre.

French companies Boccard, which operates in the nuclear energy and construction sectors, and TEKS, a high-technology aerospace firm, recently decided to locate UK bases in the town.

Rotherham, which has a fine history, is developing a critical mass of high-quality private sector employers. This bodes well for its future.

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I SMILED when I read that the Scout Association is launching a new badge to reward entrepreneurialism.

The badge, which is being funded by multimillionaire Homeserve founder Richard Harpin, will encourage members to add start-ups to their repertoire, which traditionally involves map-reading and knot-tying. Speaking as a former patrol leader, this is a wonderful idea and represents the latest example of burgeoning teenage interest in enterprise.

Young people everywhere are becoming more interested in setting up companies.

Many talk of becoming entrepreneurs.

This is interest is fuelled by TV shows such as Dragons' Den and The Apprentice.

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We should all take hope from this trend. With their fizzing creativity and natural idealism, the teenagers of today will become the wealth creators of tomorrow.

There will be many failures along the way of course, but all will be valuable learning experiences.

I hope the Girl Guides aren't far behind with initiatives of their own.