The President of one of the UK’s leading trade bodies is calling on the new Prime Minister to back up his positive industry rhetoric with real tangible support on the factory floor – before he loses an already sceptical audience.
Stephen Morley, who leads the Confederation of British Metalforming (CBM), made the direct plea to Andy Burnham on the third day of the Labour Party Conference and as thousands of SMEs continue to defy rising energy prices, stricter regulation and unnecessary steel tariffs to lead the country’s economic resurgence.
A former veteran of the automotive sector, he believes industry needs more than grand announcements and, instead, actually needs an Industrial Strategy that delivers competitive energy prices, a skills system that develops the engineers and technicians of the future and planning rules that allow companies to invest without getting trapped in years of bureaucracy.
He is also calling for regulation that recognises the difference between a multinational with a dedicated compliance department and an SME employing 30, 50 or even 100 people.
There should also be the possibility for government to follow the German example and consider expanding the definition of a small-to-medium-sized business to include those up to 500 employees.
“Management teams can deal with difficult decisions,” explained Steve.
“What they struggle with is uncertainty. When a manufacturer is considering investing in a new machine, expanding a factory or taking on additional employees, they need to know what the economic and regulatory landscape is going to look like tomorrow and in the future, not just today.”
He continued: “For manufacturing, there is little point in simply changing the faces around the Cabinet table if the thinking remains the same.
“If Andy Burnham’s administration is serious about reindustrialisation, then our SMEs must be at the forefront of its thinking. He should look closely at Germany’s ‘Mittelstand’ model, which has long demonstrated how sustained support for small and medium-sized businesses can drive regional economic success.
“It offers an example of the kind of devolved approach he has said he wants to encourage, and could be replicated in the UK.”
The CBM looks after the interests of 75,000 employees across 200 members involved in the manufacture of fasteners, forgings and pressings, cold-rolled and sheet-metal products.
It actively lobbies for greater representation for the downward supply chain and for a reduction in energy prices and steel safeguarding measures that are strangling thousands of SMEs.
Steve went on to add: “If the new government genuinely wants growth, then it needs to understand where growth actually comes from: businesses investing, employing people, exporting and making things that the rest of the world wants to buy.
“It also comes from creating an environment where the next generation of manufacturing businesses can thrive, rather than deciding that their future lies somewhere outside the UK.
“So, Andy Burnham, welcome to the top job. You have inherited a sector that is resilient, innovative and increasingly frustrated. But for British manufacturing, the test is remarkably simple ‘are we going to be better off, more competitive and more confident in twelve months’ time?’
“Because if the answer is no, then the musical chairs in Westminster will mean very little to those of us standing on the factory floor.”
He concluded: “We have spent too long navigating political storms. What we need now is a government that knows where it is going and, crucially, understands that manufacturing must be part of the journey.
“So, my message to the new Prime Minister is a simple one…don’t just tell us you support manufacturing. Show us!”
