Firms call for government action to ease trading

David Seall, south east regional director for EEF
David Seall, south east regional director for EEF

Manufacturers facing the toughest trading conditions for two decades have challenged the Government to match action to words in 2009.

David Seall, south east regional director for EEF, the employers organisation that represents manufacturers in Kent and Medway, said manufacturers in the county would be hoping that government action in 2009 would live up to commitments in the new industrial policy recently unveiled by Lord Mandelson.

The Secretary of State for Business pledged to step up its support for industry and Mr Seall called for a "sense of urgency."

More than 64,000 people work in manufacturing in Kent and Medway and Mr Seall hopes the UK will begin to wean itself off financial services and place much greater emphasis on the "real" economy.

Mr Seall said the new industrial policy must address long-term competitiveness issues such as skills, infrastructure, access to new markets and regulation as well as providing investment and support in markets where manufacturers have, or could have, a comparative advantage.

"For example, the low-carbon economy is an area where this could be done in practice and one obvious lever is public procurement," he said.

"At the same time we need to get much better at supporting emerging technologies - funding for R&D needs to be given greater priority, technology policy needs to be better coordinated and available expertise from organisations such as the Manufacturing Advisory Service South East made even more accessible."

He added: "Certainly our expectation is that trading conditions in 2009 will be among the toughest for two decades. What marks this downturn out from others is the alarming rate at which conditions deteriorated in the final quarter of last year (2008)."

While the pound’s weakness against the euro and US dollar was helping manufacturers in export markets, it was also increasing the cost of imported raw materials, he said.

"The immediate focus for manufacturers is on weathering the current economic storm. It is vital that the government continues to take steps to ensure that the many well-run and productive manufacturers in Kent are not brought down by the failings of the financial system and are around to take advantage of the upturn when it eventually arrives."

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More