The West Midlands Manufacturing Support Strategy aimed at boosting skills and creating scores of new jobs in the region was launched today by the Minister for the West Midlands Liam Byrne.
Liam Byrne said: “Manufacturing is vital to the West Midlands. It is a major contributor to productivity growth and a lead driver of innovation. It is therefore essential that there is a strategy which recognises the issues for manufacturing and that aligns the support which will help sustain and grow manufacturing in the region, minimising duplication, maximising the opportunities for joint working and providing the basis for future initiatives.
“In March I will launch the region’s first skills action plan to address the wider issues of skills and this is a great start to the process of providing people across our region with the skills we need to compete in the global economy.
“And later today I will speak at the West Midlands Regional Assembly Conference about the strength of partnerships across our region and how vital they are to our progress. This strategy reinforces that strong partnership ethic.”
The strategy was unveiled at manufacturer hydraPower dynamics close to Birmingham city centre, in the presence of leading private and public sector figures in manufacturing who have collaborated on the 39-page document.
Also present was Chief Executive Designate of Advantage West Midlands, Mick Laverty, who said: “Recent research has shown that, on average, West Midlands’ management skills are five to 10 per cent age points below the rest of the UK. Currently West Midlands manufacturing has 100,000 people at all levels that are under-skilled – about 25 per cent of the region’s workforce.
“Investment in skills both by employers and individuals is increasing but we still lag behind many other regions on the supply, demand and effective use of skills.
“The Manufacturing Support Strategy reflects the key manufacturing themes of the new West Midlands Economic Strategy Connecting To Success – and takes these forward. Support for the Strategy is strong. Partners have fed back at several stages in its development and agree that it represents the needs of manufacturing, the focus of relevant support, and the gaps in provision of support.”
The strategy focuses on three key areas:
• Innovation and Technology – developing and exploiting world class R&D capability focused on creating globally competitive innovative, high value products and services;
• Skills and Image of Manufacturing - raising demand for and use of skills in manufacturing, and to boost both employment and investment prospects to attract people into the sector by creating positive attitudes towards manufacturing;
• Business improvement – supporting development of globally competitive businesses through modernisation in key operational areas and diversification, and to provide a more responsive and effective business support service to support this.
Other secondary areas of focus highlighted include public procurement, capital investment, exports, inward investment and high growth economies.
The strategy, which is expected to have a life of at least three years, has been prepared in conjunction with Beacon Manufacturing Group, an independent public/private sector group which oversees manufacturing policy.
The primary source of direct support and advice for West Midlands manufacturing companies is through the Manufacturing Advisory Service – West Midlands (MAS-WM), which receives funding of £8m per annum from Advantage West Midlands.
In the West Midlands manufacturing accounts for 27 per cent of Regional Gross Value Added (GVA) and generates GVA per employee 30 per cent above the regional average. It accounts for around 77 per cent of all business R&D, and 54 per cent of all R&D undertaken, with an extensive regional infrastructure of R&D organisations. It accounts for 23 per cent of all full time jobs and 16 per cent of all jobs, with a higher percentage of its workforce in medium and high tech manufacturing activity (39 per cent) than the rest of the UK (37 per cent).
hydraPower dynamics, based in St Marks Street, is seen as a typical example of a successful West Midland manufacturing company. Set up 25 years ago, it has 90 employees, provides high quality engineered pipework solutions and exports worldwide to aerospace, automotive, rail and other sectors.