Pictured above: Barrie Williams

The credit crunch must not be allowed to become an economic rout, a Midland business leader has warned.

And Business Voice WM chairman Barrie Williams urged the region to look after number one, insisting that standing back and waiting for action from the Government was not an option.

As a start, councils should seek to give contracts to local firms wherever possible.

Mr Williams hit out in a speech to BVWM's Manufacturing Success conference organised with Forrest Research and supported by the Economic and Social Research Council, Aston Business School, Coventry University, Fair Finance Consortium and Emerald.

Held at the Coventry Hilton Hotel, other speakers included Minister for the West Midlands Ian Austin, Shadow Economic Secretary to the Treasury Greg Hands, Guardian business editor Larry Elliott and Jaguar Land Rover director of quality Tim Davis.

Mr Williams said: "We are facing a very difficult time in our businesses. But standing back and waiting for action in London is not an option. As well as lobbying Ministers, we really can do so much in our own firms to make a difference.

"None of us is immune from the crisis, but together we can turn things around for the sake of the livelihoods of local families."

People should not feel "at the whim of politicians".

He went on: "We are not bystanders while the global financial markets swing backwards and forwards. I do believe that we can make the difference in our own areas so that the credit crunch does not become an economic rout."

Companies struggling to obtain finance should help themselves by taking advantage of the various publicly funded aid schemes available. And similarly they should access financial help to improve the skills of their workforce.

Meanwhile councils should do their bit to support local manufacturing jobs.

"This is the moment to get procurement contracts to local firms," said Mr Williams. "This can be done fairly as local firms may be better on quality and delivery while they may differ on price. Councils can also work with other agencies so procurement plans have a big and positive impact on the economy."

The Government had produced detailed guidance to help councils and others deliver greater bang for the public sector buck.

Mr Williams noted: "Manufacturing is going through a very difficult time in the West Midlands. The end of LDV and the decision of Ericsson to pull out of Coventry are just two recent examples of the knock-backs we have faced.

"I know how desperate things have become for some businesses. Some manufacturing firms are having cash flow problems and in obtaining credit insurance. Normal loans - which keep business and jobs going - are no more for some companies.

"I do not want to see the only business sector benefiting from this downturn being the insolvency practitioners."

But, despite the setbacks, manufacturing had a bright future in the Midlands.

He added: "This may seem a strange comment to make in the current economic slowdown. But 20 per cent of West Midlands gross value added is down to manufacturing and 20 per cent of the regional workforce is in manufacturing.

"And when it comes to innovation, it is still the West Midlands leading the way.

"Some may recall, for instance, seeing in the newspapers a photo of President Obama standing by an electric van promoting the green credentials of the US Government. But that van was designed in Coventry by Modec - showing how, when it comes to ideas and innovation, we are still world leaders."