DEBATE TOPIC
Why Entrepreneurs Need To Back UK Manufacturers
By Bradley Starr I
n just 30 years, the UK’s manufacturing sector has all but capitulated in one of the largest de-industrialisations of any major economy. While the economy is now focused on the service sector,
digital, research and development, UK-based manufacturing has shrunk to just a third of what it was in 1970’s and therein lays a massive opportunity for Britain’s SMEs, whilst at the same time providing a boost to the stagnating economy.
When looking at a percentage of GDP, manufacturing has decreased from ten per cent in 2000 to around six per cent in 2010, yet there are great examples of low-volume manufacturers thriving in the UK. Where Britain’s manufacturing sector continues to flourish is in technical products, as well as the UK’s reputation for design and engineering being world-class and presenting entrepreneurs with an opportunity to tap into the type of manufacturing that has built global brands like Rolls Royce and Jaguar LandRover.
Needless to say, British innovation and entrepreneurialism needs manufacturers, and in order to retain our world-class status for R&D and for the sake of the UK economy, more of Britain’s small businesses should be exploring the use of British
30 entrepreneurcountry
manufacturers. The reality for small business is that China, as the default option for cheap manufacturing, is no longer a guarantee, wage and transportation costs are rising globally and so too are both quality and ethical concerns.
The latest government initiative, ‘’Make it in Britain,” was announced last year but has received nearly no press coverage and currently looks little more than a fashion parade, a lot of style but little substance. The urgency for investing in local manufacturing however couldn’t be greater, as the trade deficit continues to deepen, exports in 2010 stood at just £428.6bn against imports of £477.9bn. The stark reality facing the UK economy is what we do when prices inevitably rise on goods manufactured abroad when we no longer have the capacity to produce goods here at home.
And the key is SMEs, the targeted growth centre of our economy and the type of businesses who often require relatively low initial volumes when bringing a new product to the market. The drive towards new technology has enabled smaller organisations to manufacture components and complete assemblies that were previously restricted to those larger manufacturers with big machinery. Collaboration with other specialists, designers and services however,
amplifies the skills, capability and capacity and
networked small
businesses can add the value of a low cost of financing, faster delivery and improved service. The ability to produce smaller production runs locally and more cost effectively opens up the enormous opportunity for startups, inventors, entrepreneurs to invest in designing more individual products, enabling more ambition in design and thereby more consumer choice. It doesn’t just mean more goods produced locally,
it means
more innovation and creativity, protected by UK intellectual property law and with increasing access to tax incentives.
So unless an SME is looking for high volume production, it
often
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