With the manufacturing sector continuing to grow faster
than the economy as a whole, Simon Pollard, president of
the Manufacturing Technologies Association (MTA) and MD
of Kyal Machine Tools looks at what’s needed to further
boost momentum

As I write, news has just been released
of economic growth in the UK over
the first three months of 2011 – albeit
by 0.5% – led by manufacturing which grew
at a rate of 1.1%. This confirms what we in
industry already knew.Manufacturing is
continuing to lead the way out of a trough
we fell into and is the key part of the
economy that is taking us forward.

It’s been a difficult few years.When the
crash came, though not of our making, it hit
our sector hard – but the fact remains that
manufacturing matters and the UK is a great
place to manufacture.

Helped in part through the MTA’s
representation, it seems the Government
‘gets it’ too.Within weeks of the coalition
government coming into power, we were
visited at our manufacturing technologies
show – MACH – by Ministers Vince Cable
and Mark Prisk. They were impressed by
what they saw and by the arguments that we
made to them. The tide has to turn, and I
think it is turning.We are beginning to get a
new message out there; that the UK is a great
place to manufacture – the numbers are such
that no one can be in any doubt.

Manufacturing continues to grow faster than
the economy as a whole – it is pulling the
country’s economy along.

The MACH show in 2010, for most
exhibitors, exceeded targets and put smiles
back on faces.More importantly, it put
salesmen back on the road chasing leads. The
show in April 2012 will be geared to achieve
this same goal – driving sales for the
forthcoming two years.

I’m not going to over sell this.We are not
about to return to the days when we were the
workshop of the world but I believe that
there is more afoot than just a re-appraisal.

Politicians now recognise that a real
economy is not lighter than air – unless you
are in the supply chain for the new
generation of airships of course.

I know of companies who have been
repatriating work from overseas, and of
companies who have invested significant
amounts in bringing the best of modern
technology into their factories because they
believe that they can make the best of
modern manufactured goods in this country.

I believe passionately that for
manufacturing to have a future in this
country we must be strong enough to take
on increasing competition. The landscape of
the world economy is changing at a pace
unseen before. Countries which only a
generation ago barely registered on global
GDP graphs have overtaken the established
industrial nations, including our own.

I mention this not in a spirit of doom and
gloom, but in recognition of the challenge
that it presents. A challenge which highlights
great opportunity. Our heritage as a trading
nation with global links will stand us in good
stead to enter into new markets and carve
out new niches as the emerging economies
come into their own.

British manufacturers can only compete
when manufacturing technologies are the
best. This will be when we have the best
products, offer the best service, are the most
flexible and when we have a skilled and agile
workforce that understands the industry.

Of course we all know how important the
skills of our people are to the future of the
industry. The MTA has long believed in
fostering excellence and growing our skills
base, and as such we offer financial support
and advice to our Members to fund training
and apprenticeships – the lifeblood of the
industry. For the UK to be a great place to
manufacture we believe that investment is
the key. That’s investment in kit, people and
R&D. That applies right across
manufacturing – from satellites to Scotch
whisky.

We know that UK business does not have
a good record on investment. It’s not because
British businessmen and women are shortsighted,
and it is not because there is some
mythical cultural barrier to investing. It is
because in comparison to other countries the
financial support is not there.We are fighting
in the global market with one hand tied
behind our backs. Our tax system is not
properly designed for manufacturing.

The Government has an aim to make the
UK Europe’s leading manufacturing nation.

However, at the moment, it is just that – an
aspiration. Government support needs to be
made real.We’re not standing here with our
begging bowls, but we do want a fair crack of
the whip from Government. The changes
announced in the budget to extend the short
life scheme for high tech capital assets are
welcome but, by themselves, are not enough
to kick start investment we need.

The financial services sector should be a
source of strength for the whole of the UK
economy, including manufacturing. Just
think of the competitive advantage we’d gain
if some of those big beasts of the city turned
their hands from financial engineering to
finance for engineering.

We will keep pressing the case with
Government and continue to work with
Members and stakeholders to make sure the
UK remains a great place to manufacture.