The University

Support for exporters, jobs and making sure that credit flows through to business remain the top priorities for the manufacturing sector and wider economy, according to a leading business commentator and Midlands academic.

Professor David Bailey, from Coventry University Business School, said these, along with growth in export markets, could help trigger a mini-renaissance in manufacturing. He also pointed to the fact that more needs to be done by government to support the manufacturing industry.

Professor Bailey was speaking at a dinner in Birmingham to launch Deloitte manufacturing group’s first “Made in the UK” survey, which examines the critical issues for UK manufacturers trading in the global marketplace.

The findings of the survey reveal that 94 per cent of respondents export at least some of their manufactured output, with more than a third (35 per cent) exporting more than half of their production. Most saw their biggest challenge as achieving the efficiency necessary to be able to compete internationally on price.

The survey also illustrates that the comparative weakness of sterling has not yet boosted exports as much as may have been anticipated with fewer than one in three manufacturers (30 per cent) saying their exports had increased over the past 12 months. However, 94 per cent said they expected export figures to either remain the same (39 per cent) or increase (55 per cent) over the next two years.

Professor Bailey, who also took part in a podcast as part of the “Made in the UK” report launch, said: “The results of the survey demonstrate how critical exports are to manufacturers in the UK and the Midlands, and also how important they are going forward for providing a stimulus to the economy.

“With nearly all those questioned engaging in exporting, it is hoped that via outward looking manufacturers the UK has a chance to export its way out of recession, if conditions allow.

“This is critical as the main stimulants to the economy so far – the monetary and fiscal stimulus, the manufacturing re-stocking and a degree of restored financial sector confidence – will only take us so far.

“Overall, those surveyed are optimistic as to export prospects, with more than half expecting exports to rise. This is a useful indication that sterling depreciation and export growth are still expected to be the biggest stimulus for the sector going forward.

“This reinforces my view that more should have been done to cushion the blow to the manufacturing sector during the downturn to keep the capacity in place, which will both secure jobs and ultimately provide the export platform needed for growth.”

Jane Lodge, Midlands manufacturing industry leader at Deloitte, said: “The Midlands manufacturing sector’s role in lifting the UK out of recession should not be underestimated; neither should our technical capabilities which are gaining ground on other jurisdictions particularly in the high tech and environmental technology areas.”

For a copy of the Deloitte “Made in the UK” report and to listen to Professor David Bailey’s podcast visit www.deloitte.co.uk/pointofview