Manufacturing in the West Midlands
Manufacturing is a key part of the Business theme in the West Midlands Economic Strategy. It is one of the region’s major strengths and is essential for its future prosperity and we must build upon it. It is the most productive of the major sectors and the biggest creator of wealth. It accounts for 27% of regional Gross Value Added (GVA) and generates GVA per employee 30% above the regional average. It is a major contributor to productivity growth and a lead driver of innovation.
The West Midlands is home to important manufacturing brands and innovations, as well as an extensive regional supplier infrastructure. Manufacturing is important for the future prosperity of the region which is renowned for inventing, developing and manufacturing many and varied products. Today, companies need to produce higher value added products and those which have already made this transition and moved up the value chain are successful.
There are however many businesses which are under threat because they are not adapting to today’s manufacturing environment. This is compounded by low skill levels throughout much of the sector resulting in a lack of productivity and competitiveness.
The West Midlands Manufacturing Support Strategy
The Strategy aims to address these problems and is the result of Advantage West Midlands and its partners working with key manufacturing groups - such as the Beacon Manufacturing Group, the EEF, Confederation of British Industry and Federation of Small Businesses, to agree priorities for the sector.
The Vision for Manufacturing in the West Midlands
A manufacturing industry where in 10 years:
Manufacturing companies have a larger proportion of their turnover from new products and services
A much higher number of companies are operating globally by
o following their customers to new and high growth economies
o confidently marketing their products and services
o focusing on growing markets
Stronger demand for and supply of higher skill levels are enabling businesses to innovate, change and compete in all markets
The region’s middle market manufacturing companies in particular are experiencing consistent strong growth (important because of the disproportionate impact they have on the regional economy).
There are three main focus areas to achieve this vision:-
Innovation and Technology
To develop and exploit world class R&D capability focussed on creating globally competitive innovative, high value products and services
Skills and Image of Manufacturing
To raise demand for and use of skills in manufacturing, and to boost both employment and investment prospects for the sector by creating positive attitudes towards manufacturing
Business Improvement
To support 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.
To this end Manufacturing Advisory Service and Business Link are funded by Advantage West Midlands to offer support to SME Manufacturing Businesses in the region wishing to improve any aspect of their business.
Advantage West Midlands also funds grants for capital investment (Selective Finance for Investment) and grants for R&D.