Manufacturers must develop renewed courage in the face of Far
East competition, according to a leading industrialist.
Mike Dell, managing director of Bilston-based Rubber Astic and
President of Black Country Chamber, said they had caved in too
easily in the past.
Now that Chinese imports were becoming more expensive, amidst
strikes and pressure for higher wages, there was an opportunity to
fight back.
Mr Dell's comments came as he and KPMG partner Bill Cooper took
on new responsibility for making business views heard across the
West Midlands.
Mr Cooper, a partner in the Birmingham office of accountants and
business advisers KPMG, put forward by Birmingham Chamber of
Commerce, has succeeded Glyn Pitchford, who has retired after the
end of his three year term as the Business Voice WM representative
on the Birmingham and Black Country City Region Board.
Peter Wall, who has also retired after the end of his term as
the alternate BVWM representative, has handed over to Mr Dell, a
Black Country Chamber nominee.
He will serve as a full member of the Board alongside Mr
Cooper.
Mr Dell said it was up to business to spell out what it thinks
on major issues, particularly if regional development agencies were
scrapped.
"We have a real opportunity to be listened to at Westminster and
locally. There is no point in waiting to see what happens and
moaning about it afterwards - it is important to shape it now."
Manufacturers had in the past "given up too easily", deciding
they could not compete with the Far East. The politicians had not
seen the damage this would cause, believing the country could exist
on financial services and other invisibles.
The credit crunch and banking crisis had exposed the strategy's
failures. It was "not working".
And there were other issues in manufacturing abroad.
It tied up cash and often produced problems with quality.
Now, with sterling low and an unpredictable market, it was often
easier to deal with someone 100 miles away than 10,000 miles
away.
The big consumers of products - such as Jaguar Land Rover, JCB
and the supermarkets - had to be persuaded to buy British.
And British manufacturers had to start competing again.
But Government had to help UK firms by ensuring on both taxes
and regulation the country was competitive too.
Paying tribute to his predecessors' contribution, Mr Cooper
said, given the economic austerity, the City Region needed to play
a bigger, not lesser, role.
Mr Cooper went on: "The Midlands is one of the regions where the
economy is most exposed to public sector spending cuts, and the new
Government has recognised this.
"There is already a big jobs gap. With local government having
to get by with 25 per cent less funding, the question is how you go
through that and achieve these cuts yet minimise any adverse effect
on the local economy.
"The City Region has a role to play in promoting economic growth
and inward investment. It needs to show clear leadership and
vision."
It was also important to bid successfully for money from the
planned new £1 billion regional growth fund targeting the
sort of things the City Region's constituent authorities could not
achieve alone.
He added: "It is very likely we will see some activities
currently performed by government or local government divested into
the private or charitable sectors."
Mr Cooper, who is national leader of KPMG's local government
advisory practice, said he and Mr Dell would bring different
perspectives to bear. "He knows all about the Black Country. I
understand the pressures on local authorities while KPMG has close
connection with the private sector locally through its client
base."
He said Mr Pitchford and Mr Wall would be a hard act to
follow.
"They have made a major contribution towards improving the
regional economy and getting the business message across.
"The time and effort they have put in has been immense and I pay
tribute to them.
"They have led the way and it is up to us to take the challenge
on and move forward."