SECTOR FOCUS: MANUFACTURING
BUSINESS INSIGHT BY JAMES O’BRIEN
Much has been said about private companies providing more jobs to counter the managed decrease of employment in the public sector. This switch of emphasis is one of the planks of Coalition politics. But the rebalancing of jobs in the two sectors is making slow progress. I am always looking for signs of
encouragement and recently there appeared to be a chink of light emerging from some analysis carried out by Aston University in a growth review of the Business Structure Database. The university was looking into private sector turnover attributed to mid-sized businesses (MSBs). The MSB turnover as a
proportion of total turnover for each UK region features the West Midlands as one of the highest. The analysis shows that the number of MSBs, which uses the definition on a turnover size of between £25m and £500m annually, have grown more rapidly than the number of small and large firms. They have not declined in number since the recession. These businesses are recognised
as accounting for a significant share of economic activity and an improvement in the performance of the MSB sector would be positive for GDP growth in the UK. In 2010 there were about 10,000 MSBs in the UK and they accounted for around one-fifth of registered private sector employment and output, says the analysis. To take a gentle look at some number crunching the analysis finds that from 1998 to 2004 the number of firms reaching MSB qualification averaged 295 but since 2005 the average has fallen to 102. Between 1997 and 2010 MSBs have become less dynamic and although the analysis does not state this, I suspect it may well be due to the rise of a more competitive manufacturing market in Asia and the Far East. In 1997 MSBs created 718,000 jobs, in 2006 created 348,000 jobs and in 2009 created 236,000 jobs. At least they are still creating jobs.
James O’Brien runs Writing and PR for Business:
www.jamesobrienuk.com
42 CHAMBERLINK FEBRUARY 2012
L-R: Nick Wildgoose, expert on supply chain management; Adrian Jones, Smith Cooper; Phil Taylor, Lloyds TSB; Simon Griffiths, MAS-WM; and Tim Palmer, ECGD
Debate addresses supply chain and export issues
by Lloyds TSB Bank Commercial, Midlands accountants Smith Cooper and Perkins Slade Insurance Brokers, and their guests. Local manufacturers debated important issues such as those relating to supply chain risk and export funding.
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‘I found it very useful to hear the views of the experts’
Jason Brookes, engineering director at Widney Manufacturing, said “We import raw materials and
aguar Cars Visitor Centre in Castle Bromwich was the venue for the ‘West Midlands Manufacturing Debate’ organised
export 60 per cent of our production so I found it very useful to hear the views of the experts on supply chain management and of Lloyds Bank export specialists.” In response to delegates’ questions, Simon Griffiths,
chief executive of MAS-WM, said: “The Department for Business Innovation and Skills has confirmed that the MAS will be continuing in 2012 as a national service. West Midlands manufacturing companies looking to improve their competitiveness should make full use of this very well respected resource." Adrian Jones, from Smith Cooper, who chaired the
event, added: “Local manufacturers are a key component of the West Midlands economy and we were delighted to hear of the ways that delegates are achieving success.”
£45k rebate for Chamber firm
A Birmingham manufacturer has made substantial savings on its utility bills after receiving valuable advice from cost management experts Auditel. The Walsall-based consultant, which provides free company healthchecks for Chamber members, identified where savings could be made at William Mitchell, the Smethwick based Fine Blanking business, and Fellows, the deep draw presswork specialists in Wolverhampton, both part of the Rical Group of companies. Auditel analysed the company’s utility bills and visited several of its sites. As a result, it was discovered that Rical were being overcharged by South Staffs Water at both sites.
sites. Auditel were also able to ensure on-going savings for Rical. Rical financial director Paul Marsh
said: “A rebate of this size is certainly of benefit in the current tough climate. What this exercise has shown is the value of seeking expert advice from a third party like Auditel. They have demonstrated a high level of knowledge and determination to deliver significant savings for their client, the results speak for themselves.” Auditel’s Adrian Burton said:
Following months of evidence gathering by Auditel, the utility company was invited to attend the sites and the facts were presented. The result for Rical was a rebate of close to £45,000 covering the two
“Whilst this project took many months to deliver it really does demonstrate the secret to cost management. Be patient, thorough in your fact finding, and do not be deterred when obstacles are placed in front of you.”
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