We need to build on manufacturing strengths: Hyde
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by Malcolm
Hyde Regional director CBI South East
Times are tough. The big question is where we take things from
here.
We're not helped by external forces. I won't discuss the
Eurozone crisis because it's probably had a new setback in the time
between me writing this piece and you ready it.
Instead I'll share with you my thoughts on economic rebalancing
- what I think it means; the role manufacturing has in it, and how
a new type of industrial activism could help breed home-grown
success stories.
It's not a rebalancing act that should mean some sectors
shrink.
Yes, we want a strong City of London but it needs to play a less
dominant role in the overall economic mix. If not, we run the same
risk of over-dependence that we did in the run-up to the financial
crisis.
And rebalancing shouldn't mean trying to engineer a wholesale
shift of economic activity away from services and towards
manufacturing.
Our traditional strengths in services need to be built on, be it
in finance, professional and business services, the creative
industries, retail or tourism.
Services growth helps manufacturing, and we shouldn't draw an
artificial distinction between the two.
Most manufacturers provide services, whether delivering and
installing what they've made or being involved with performance
management and consultancy.
Logistics, design and finance are part of manufacturing just as
they are part of services - and they're British strengths.
The UK is still one of the world's top-ten manufacturers.
But our future lies in mixing traditional strengths with
innovation, R&D and advances in hi-tech and low-carbon.
What's needed is a new form of industrial policy, one that
signals ambition, helps develop future capabilities and secures
sustainable growth... and this doesn't mean revisiting the 1970s
industrial landscape of Red Robbo!
A new understanding needs to run through all of government with
all departments sharing the same ambition.
They all need to work to join up policies and create a system
that's more than the sum of its parts.
They need to create an environment that will give investors the
confidence to put their money into growth here in the UK and not
abroad.
By taking the right actions, we'll encourage investment, boost
industry and help that process of rebalancing away from debt and
towards sustainable growth and an export-led recovery.
Positive thoughts that accompany my very best wishes to you all
for the year ahead.
Monday, January 09 2012
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