Funding axe hits industry advisory service

The Manufacturing Advisory Service Yorkshire & Humber (MAS), which helps manufacturers to improve their productivity and competitiveness,

said that the regional development agency has asked it not to commit to any new projects until after the Government's spending review later this month.

The Government believes that increasing the UK's exports will help to rebalance the economy. But the future of MAS, which operates in nine UK regions, remains uncertain.

Regional director Robin Watson said: "There is a mismatch between what is happening here and now and the aspirations of the Government.

"If you are going to rebalance the economy as indicated, from the point of view of the sector and geography, it has to have directed support, it's not just going to happen.

"My endeavour is to try to sustain a continuity of the good work we are doing here until the national picture becomes clearer.

"Unfortunately, it doesn't seem as though that is going to be possible, despite Yorkshire Forward's best efforts, so we are going to have a bit of a gap.

"We received a letter two weeks ago asking us not to commit to any new projects."

He added: "It's already impacting on the work we do. Typically, every month we will have about 50 manufacturing businesses coming to us seeking support – companies that haven't engaged with MAS before.

"But now the help we are able to afford to give is severely limited."

Over the last year, MAS has helped more than 1,000 businesses in the region, which it claims generated more than 30m of gross value added (GVA), the measure of an area's ability to generate wealth. It also claims to have safeguarded more than 3,000 manufacturing jobs with its work.

"These are heady figures and I am immensely proud of what we have achieved," said Mr Watson.

"We run the business in a commercial way. We take very seriously being a custodian of public money and use it as we would our own.

"When we support a business to improve its effectiveness, we take a considered view to make sure that the economy will see some real benefits.

"That positions us very differently to other organisations. We run a very tight and lean ship."

MAS is jointly funded by Yorkshire Forward and European Regional Development Fund (ERDF).

Mr Watson said: "We have been able to establish a trusted relationship so people will come to us for help.

"We have a frustration because we know there is a need out there and we are doing our absolute best with limited resources, but potential benefits to the sector in the region will not be realised now."

Yorkshire's manufacturing sector employs 300,000 people, although the number has declined. In 2007, 360,000 people were employed in the manufacturing industry.

Mr Watson said: "I feel as though I am letting down manufacturers in this region because I feel as though in some way I have failed.

"We are out of control of a situation where we have done

so much and want to continue doing good work which is clearly benefitting the region."

Jim Farmery, assistant director of business at Yorkshire Forward, said: "Due to the current embargo on any new commitments after March 2011, and the potential of further cuts in the forthcoming spending review, Yorkshire Forward has concluded that all Manufacturing Advisory Service delivery – including new and currently contracted work which is

in progress – is completed by March 31, 2011, meaning that the current MAS programme will be closed for any new inquiries with immediate effect.

"This is a purely financial decision and is no reflection on the performance of the Yorkshire and Humber MAS team and its proven value to businesses in the region."

MAS is supporting the SME Manufacturer of the Year category at the Yorkshire Post Excellence in Business Awards this month.

It is managed and delivered by YFM Business Development, part of the GLE Group – a not-for-profit enterprise development company.

A spokesperson for the Department for Business, Innovation and Skills, said: "We are working with the regional development agency network to minimise the impact of the savings on priority programmes, but this is about letting the RDAs make their own decisions in the run-up to the transition period.

"The RDAs have been encouraged to keep stakeholders and delivery partners involved in affected programmes informed as decisions are finalised."

MAS success story

Malting firm Muntons is one of the companies which has benefited from the help and advice of the Manufacturing Advisory Service (MAS).

The Bridlington-based site, which processes barley into malt and associated products, called on the organisation to help it reduce wastage and improve productivity.

Tim Wakeley, Munton's compliance manager, said: "MAS specialist Phil Hanson, from Lean Business Solutions, visited the site to carry out a manufacturing review.

"We were impressed with his in-depth knowledge and he soon got the ball rolling with a MAS 10-day manufacturing improvement project based on lean philosophy implementation."

He added: "We also looked at the provision of cleaning equipment, brushes and shovels. Improved provision of cleaning equipment has led to improvements in site hygiene and a reduction in lost time finding the right tool."

Muntons has had a presence in Bridlington for more than 40 years and employs 33 people on the site which has a turnover of 27m. Customers include brewers, distillers and food producers.