Signs of 'growing confidence' among West Midlands manufacturers
A report which says manufacturers believe the UK is a more competitive place to locate their activities compared with a year ago has come as 'no surprise' to West Midlands business leaders.
The research also found increasing number of firms say they are moving ahead of their European rivals, although they remain wary of the huge threat to their competitiveness posed by the US, India and China, said a report.
The survey of more than 200 senior manufacturing executives by Make UK and PwC found that, after a difficult few years, through the pandemic and rising energy prices, there are optimistic signs. Firms were said to be more bullish about the prospects for manufacturing in 2024.
Stephen Morley, President of the Confederation of British Metalforming (CBM), which represents UK manufacturers of fasteners, forgings and pressings, cold-rolled and sheet metal products, said: “The positive findings come as no surprise.
"It clearly reflects a growing confidence on the shopfloors of thousands of manufacturers across the UK and especially in the West Midlands where we have lots of tales of investment and work being reshored.
"I’ve seen this first-hand when visiting tier 1 suppliers Sertec Group and Gestamp recently, fantastic examples of how our businesses are using advanced manufacturing techniques in pressings and assemblies to remain globally competitive.
"The same applies to Steel & Alloy Processing, where investment in cutting edge process lines has secured new opportunities and, importantly, delivered an enviable safety record for many years.
"These are just a few examples of what is being achieved by management teams all over the region, achievements completed despite economic uncertainty and a fragmented political landscape.
"The findings are extremely positive, but I can’t stress enough the importance of creating an environment that gives our manufacturers reassurance and a confidence to invest in technology and invest in their people.”
His view comes as Stephen Phipson, chief executive of Make UK, said the last few years had been a 'rollercoaster of emotions for manufacturers'.
"Yet they have more than demonstrated their resilience time after time," he added. “We are now seeing some hope that conditions may be improving, amid a more supportive and stable policy environment, but this must be cemented within a long-term industrial strategy."
Tony Hague, CEO of PP Control & Automation, Cheslyn Hay, added: “We are very confident about the next 12 months.
"A strong 2023 has continued into this year and the pipeline of new projects at PP Control & Automation (PP C&A) is at one of the highest peaks in our history.
"Supply chain disruption is starting to ease and everyone in industry hopes this continues. A catalyst to ignite consumer confidence will also help fuel the buoyancy and this could be achieved with a general election and a reduction in interest rates – the latter can really hold back capital expenditure decisions.
"As the findings suggest, the UK has a unique opportunity to regain competitiveness through its commitment to sustainability, Environmental Social Corporate Governance (ESG) and associated market opportunities in clean energy, mobility, and agritech.
"Collaboration across the public/private sectors, combined with a coherent long-term Industrial Strategy, can help maximise these opportunities and mirror some of the strides made by the US, China, Japan and Germany.
"However, we must change our attitudes to investment in automation, robotics, training and attracting the next generation of engineers and industry leaders.”
