Investment in technology key to manufacturing boost in region

MANUFACTURING could account for one fifth of Yorkshire's economy by 2030, provided companies invest in technology, according to a report compiled by a taskforce of business leaders.

The taskforce was established by Yorkshire Forward in January last year after steel firm Corus announced plans to cut nearly 1,000 jobs in the region.

The group, chaired by Richard Wright, a former president of Sheffield Chamber of Commerce, has devised a strategy to help Yorkshire's manufacturers compete with low-cost overseas rivals.

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The Manufacturing Strategy for Yorkshire and the Humberargues that manufacturing could account for 20 per cent of the regional economy by 2030. Today, manufacturing accounts for 13 per cent.

The report states that hi-tech manufacturing has remained strong, despite global competition.

Four manufacturing strategic sectors have been chosen as suitable for growth and development. They are advanced engineering and materials, digital technologies, healthcare technologies and low-carbon technologies, such as bio-refining, biomass and carbon capture

and storage.

Mr Wright said: "These sectors have been chosen because they represent enormous international market opportunities and, regionally, we know we are good at them and, therefore, are able to compete in the world market and export products and make money. This gives us the best return on our investment.

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"This in no way detracts from the importance of businesses in other sectors, but identifies them as drivers through which manufacturing can

produce a step change in its performance and by which Yorkshire and the Humber will be recognised internationally. Resources are finite, so to fully exploit commercial potential, resources have to be focused".

Mr Wright said that if investment was spread too thinly across the sector, it would probably not make a difference.

The taskforce, which met every two months, included representatives from regional companies, Business Link Yorkshire, the Manufacturing Advisory Service and the Engineering Employers Federation.

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A Yorkshire Forward spokesman said the taskforce had achieved its objective and had been disbanded. The project had moved into its second stage – the formation of an industry-led steering group to implement and deliver the strategy.

The spokesman said that between 12 and 20 people had been involved with the taskforce, and eight people are on the steering group, including six who are not linked to the public sector. Although Yorkshire Forward did not spend any money on the taskforce initiative, the spokesman stressed that Yorkshire Forward had brought the group together.

Simon Hill, executive director of Business at Yorkshire Forward, said: "Manufacturing is important because it is a high exporter and brings real value into

the region.

"Manufacturing is high onthe national agenda and we believe Yorkshire and the Humber can lead the way nationally with this focused strategy."

Timely help and advice for businesses

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The taskforce was set up last year to help revive Yorkshire's manufacturing sector after steel company Corus announced plans to cut jobs around the region.

In January 2009, Corus blamed the worldwide downturn for its decision to cut 2,500 jobs nationwide, including 713 in Rotherham, 93 in Scunthorpe, 53 at a distribution depot in Stourton, Leeds, and 18 at Stocksbridge, near Sheffield.

Yorkshire Forward responded by setting up a manufacturing taskforce to offer short-term help to businesses and identify measures to help firms take advantage of an upturn.

Last summer, the taskforce expressed concern that many regional companies were missing out on opportunities to gain advice and funding.

Richard Wright, the taskforce's chairman, said he feared that struggling companies were failing to access support that could help them to survive.

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