High-tech manufacturing seeks to put outdated image behind it

MORE than 100 of the UK's leading advanced manufacturers are to meet the Government today to discuss how to promote manufacturing excellence and dispel the myth that Britain no longer makes anything.

The summit, led by Business Secretary Vince Cable, is part of the Advanced Manufacturing strand of the Government's Growth Review, which will announce policy proposals at Budget 2011.

Dr Cable is expected to ask UK businesses manufacturing cutting edge products to throw open their doors for a day to students and teachers to offer an insight into engineering and manufacturing.

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The Government is concerned that while the UK is a world leader in making high-tech products, the outdated image of the sector is restricting its ability to attract the best talent and creating a barrier to growth.

Business Minister Mark Prisk told the Yorkshire Post that he wanted to change the way people think about the industry.

"We are very keen to change the habit of the last 10-15 years that everything is about financial services," he said. "We are getting all the key players in industry together with manufacturers to look at innovation, investment and apprenticeships.

"People who don't work in the manufacturing sector sometimes have a perception of the industry that dates back to the 1960s or 1970s. It's important that people realise manufacturing is now modern and clean. We are looking at factory open days across the industry to show what actually happens in modern industrial enterprise.

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"There are new skills, good wages to be had and good job prospects if you go into this industry."

Mr Prisk highlighted South Yorkshire as a key player in promoting manufacturing as a career, with the Advanced Manufacturing Park, which is home to the Advanced Manufacturing Research Centre, in Rotherham, leading the way.

Companies will open their doors for a day as part of a week-long event.

"Some are already doing it on an individual basis but we want to bring it all together to create a greater profile," said Mr Prisk.

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The Minister declined to estimate how many extra employees were needed in the manufacturing sector in order to help it to grow but said it was "significant".

"We are looking to work with key businesses about their needs rather than trying to make estimates," he said. "It's encouraging to see that people now have growth plans they didn't have six months ago. We need a significant increase in the number of people in the manufacturing sector so let's go out and build these numbers."

Earlier this month, Pam Liversidge, engineer and senior warden of the Cutlers' Company, in Sheffield, warned that another obstacles is "bully boy tactics" adopted by large companies who are taking longer to pay their suppliers.

Mr Prisk said the best way the Government could tackle the practice was leading by example and setting a standard of paying suppliers within 30 working days. As for the long-standing problem of access to finance, Mr Prisk said that the establishment of an appeals process for businesses who think they have been turned down for lending unfairly would help the Government to monitor the situation.

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"I have asked businesses to copy me into correspondence so the Government can see what is happening. Small businesses need to be able to challenge the behaviour of banks."

He added that increasing competition was vital in the banking sector and as well as the ability of bank managers to get to know businesses and be able make decisions on the ground.

While the Government is unable to change commodity prices, which is an increasing burden for many manufacturers, Mr Prisk said that the Government's pledge to pump 50m into MAS would help businesses who are facing rising costs.

Although the UK's advanced manufacturing sector is facing increased competition from countries like China and India, Mr Prisk said the UK's strength lies in its creativity and design and taking advantage of growth sectors, such as low carbon vehicles, as well as established brands

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"We are very well regarded in many of our prime brands such as Jaguar and Austin Martin, which are synonymous with the UK," he said.

Picking up pace to reach a 16-year high

Manufacturing activity grew at its fastest pace in more than 16 years in December and firms' costs rose at a record pace, suggesting at least one sector of the economy may be ready for higher interest rates before the end of 2011.

The Markit/CIPS manufacturing Purchasing Managers' Index (PMI) rose to 58.3 in December, its highest since September 1994, aided by growth in domestic and export orders. The index has been above the 50.0 mark separating growth from contraction since the middle of 2009.

The survey showed average input costs rose at the fastest rate in the survey's 19-year history, reflecting steep gains in the cost of cotton, food products and energy.