We need more than words, says manufacturing sector

Research by Leeds-based accountants and business advisers BDO suggests that just 29 per cent of manufacturers across Yorkshire and the Humber believe the Government is adopting the right strategies to support the manufacturing sector.

Almost all of those surveyed (94 per cent) said they “value” the Government’s message that manufacturing is essential to the UK economy. However, the research indicates that many do not see policy pledges leading to changes.

The findings are drawn from BDO’s Manufacturing the Future survey, which is based on a poll of 1,500 manufacturers and engineers in Yorkshire.

The creation of an “industrial bank” and a focus on manufacturing skills are among the ideas supported by Yorkshire’s manufacturers, according to BDO.

There’s also a call for “increased patriotism” with many respondents believing that UK companies should be favoured when large public contracts are awarded.

The region’s manufacturers are still optimistic, with 71 per cent predicting an improvement in the economic outlook in 10 years’ time. But half (52 per cent) are concerned that manufacturing will not be a core sector of the UK economy in the next decade, while 55 per cent anticipate no increase in the sector’s share of GDP.

Jason Whitworth, partner at BDO in Leeds, said: “If there’s one message we’re hearing from manufacturers, it’s that words are not enough. Our research suggests that policy pledges amount to empty rhetoric, not concrete change. Optimism for longer term economic growth is encouraging, but it’s worrying that manufacturers don’t envisage they’ll have a significant role in achieving it – especially given the Government’s insistence on the sector’s importance to the rebalancing of the economy.”

A Department for Business, Innovation and Skills spokesman said: “The Government fully recognises the importance of manufacturing, its vital contribution to the growth of a more sustainable UK economy and its key role in rebalancing the economy, which is why it remains central to the Strategy for Growth.

“Working with business, we are taking steps to strengthen UK manufacturing’s capability, ensuring a better business environment that will address barriers to growth, encourage innovation, exports and business investment and improve skills.

“This is being done through programmes such as the £2.4bn Regional Growth Fund, and the £125m Advanced Manufacturing Supply Chain Initiative and Manufacturing Advisory Service which are offering real support to businesses.

“We are also tackling outdated perceptions of the industry, particularly among young people through our Make it in Great Britain campaign, to demonstrate how vibrant and rewarding a career in manufacturing can be in the 21st century.”

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