manufacturing roundtable 13


manufacturing sector is in extremely good health.”


Kate Arnott confirmed that MHA MacIntyre Hudson’s own annual manufacturing survey (issued in September – see page 40) had recorded a 16% dip in optimism for sector growth, with concerns over global turmoil, the Chinese debt crisis, the eurozone, and the strong British pound squeezing margins. “However, overall 76% of those surveyed are predicting expansion. They are still planning to increase headcount, despite their two main problems of skill shortages and the red-tape burden. There has been a dip, but it is still a sector with a lot of potential for growth with many businesses experiencing more stability.”


Murray noted that the EEF had reported 42% of south-east manufacturing companies currently experiencing an increase in output over last year.


Chris Reid


lack of engineering, science, mechanical design graduates. Over the past five to10 years, a gap has arisen in the skillsets and training for such fields.”


Sean Wright agreed there were more PE deals happening within manufacturing. “I’m not sure there’s any rhyme or reason for that, other than PE houses are looking for good companies making a decent profit, whatever the sector.”


He concurred that he knew several manufacturing companies with good order books and confidence for the coming year, yet still cautiously optimistic because of their macro-economic worries such as currency strengths and political unrest.


Michael Sachpekidis


Chris Reid of Mclaren Applied Technologies: “We are looking to expand quite a lot over the next couple of years but our major worry is recruiting the rights skills.”


Xtrac was also looking to expand, said Stephen Lane: “There is always going to be a demand for high-quality product – if companies can differentiate themselves and identify their USPs there will be demand for their products and services. Statistics appear to show there is a cautious optimism in the sector.”


While businesses can control their own operations, and to a certain extent their supply chain, the worry was macro aspects out of their control such as the Chinese or Greek economies, and activities of global organisations and large international companies. “As long as we are all looking after our own businesses, with integrity, commitment, knowledge and skill there is a fighting chance that things will continue to get stronger.”


Moog’s Michael Sachpekidis noted that growth was not happening in all manufacturing areas, although the sector overall was faring well.


He added that Moog was continuing to expand its operations. “But, we’ll need a lot of recruitment and that is where we are struggling at the moment. There is a huge


THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2015


Anyone manufacturing their own recruits?


Recruitment and getting young people into the manufacturing sector were plainly concerns of the Roundtable.


Goodman remarked: “It’s clear there is a massive impasse between what the colleges are looking to do and what the manufacturers are seeking.”


Representing the Thames Valley Berkshire LEP, Graham Wadsworth said his focus was on discovering manufacturers’ issues about recruitment and skill supply to the sector. “Are manufacturers liaising with schools or creating their own training academies?” he asked.


Noting Goodman’s viewpoint, Wadsworth explained: “There is always going to be a challenge with universities and colleges because they are businesses with their own agenda. If enough students want to study embroidery for instance, they will provide the course.


“So, if you can’t rely on local colleges to produce your skills, and can’t draw talent in from elsewhere in the UK or abroad, maybe you need to be manufacturing your recruits yourselves? Tescos and Barclays do it already, after all. And, this is where the LEP can help, but needs to know what you mean by business and manufacturing skills.”


Prof Mark Jolly noted there had been a distinct reduction in candidates for Cranfield’s ‘Operations Excellence’ Masters


Nick Jones


Arnott noted her clients, typically family businesses spanning multiple generations in High Wycombe, tended to be predominantly involved with more traditional


Continued overleaf ... www.businessmag.co.uk


programme. “So, companies are not sending their people to the mid-management skills area, yet I have no problem getting small research contracts with companies who want post-graduates to help develop their technology.”


Where are the building blocks of manufacturing ...


Commenting on Cranfield/Coca-Cola research about the lack of engineering skills in manufacturing, Jolly added: “We have come to the conclusion that you have to start from a very, very early age – not junior but infant school – to begin influencing the parents and teachers that there are good careers in manufacturing and they are not the type of careers that people think. They are not hot, sweaty, and dirty jobs where you don’t normally find women.


“Manufacturing is a different type of business today and we are not getting that message across as a manufacturing community.”


Sachpekidis recalled the TED Talk words of Sir Ken Robinson who spoke about encouraging innate passions, and exampled how both boys and girls play with building blocks from a very young age. “We’ve all seen how children make things, and yet the education system seems to squeeze that out of them.”


Murray revealed that in the 1980s, around 5.6 million people worked in the UK manufacturing sector, now was 2.6 million and the generational parent-child lineage of employment was much less frequent.


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