AROUND THE REGIONS JANUARY 2019
AROUND THE REGIONS:
YORKS & THE HUMBER
In a diverse region, manufacturers great and small are predicting varying levels of
growth for 2019. But all are taking steps to prepare for Brexit – whatever the outcome
BY JUNE SMITH, MEMBERSHIP & EXTERNAL AFFAIRS MANAGER FOR YORKSHIRE & THE HUMBER, EEF
W ith 2018 just behind us, orders
and balances across Yorkshire
and the Humber (Y&H) generally
remain positive. As we edge closer
to leaving the EU on 29 March,
growth forecasts for 2019 from
manufacturers across the Y&H region reflect our
diversity, with very few anticipating a decline and
most varying from maintaining the status quo
through to 100% growth. Whilst it’s difficult to
pick out trends amongst sizes and subgroups of
manufacturers, investment in people and capital
continues and one thing is clear: even businesses
with the most robust pipelines are keen to have
an agreed operating framework within which to
conduct and plan for trade with the EU.
Our recent successes across Y&H come in all
shapes and sizes. A global engineering business
with a site in West Yorkshire will close the year 20%
above target, a small foundry in Sheffield is working
flat out, serving mainly the domestic market, a highperformance
global engineering design business
reports a strong pipeline with no visible Brexit
effect and a steel company has doubled in size in
the past 18 months, with 54% of its trade in the EU
and plans for a further 25% growth next year.
However, caution and contingency planning
are increasingly being reported, with differing
and varied solutions to the ‘what if…’ of Brexit.
Some manufacturers, fearing logistics delays at
ports, are stockpiling goods in the UK, potentially
distorting our manufacturing output figures.
Others may choose to, or are being required to hold
stock on mainland Europe, as is the case with a
supplier into the EU truck market and a number of
manufacturers with European parents. Conversely,
a small packaging company located in West
Yorkshire is keeping an eye on Brexit developments,
and considering re-shoring its manufacturing
from Eastern Europe if Brexit causes excessive
turbulence. For some, however, stockpiling is
not an option if space is at a premium, and their
downward supply chain is not agile enough to flex
their production.
A newly signed EEF Affiliate Partnership with
Marketing Humber is helping to raise awareness of
the ports, logistics and freight forwarding facilities
available within the Y&H region.
A recent export event showed
off the region’s desire to grow
exports and explore new
markets outside the EU. Our
manufacturers are reporting
major successes in Africa, the
Middle East, China and India
– and a special ‘well done’ must
go to Paxman Scalp Cooling,
winners of the EEF Regional
Innovation and Business Growth
Awards for their considerable
success in the USA.
Addressing skills gaps
and shortages remains a key
priority for many of the region’s
manufacturers, and whilst the
adoption of 4IR technologies
is slower than is desirable, I’m
pleased to report an increased
take-up of 4IR activity across
the region. This is in part as
a solution to skills issues and
also driven by the need to
improve productivity. New
business models are starting
to emerge, and processes are
being simplified and adapted to
facilitate robotics, as in the case
of a medium-sized automotive
supplier within the region.
Electronics was a particularly
strong sector in 2018 for the
region. For one small business in
Leeds this looks set to continue,
Yorkshire firms
are looking to
markets outside
of the EU for
growth in 2019
and with a forecasted growth
of 60% in 2019, investment in
new premises will be crucial to
meeting demand. A shortage of
local, suitable, grow-on premises
may force the business to move
further afield and whilst this
will test the mobility of their
workforce, a larger footprint
is essential for their continued
growth and will take priority
over skills shortage concerns.
By contrast, a computing
technology design business in
South Yorkshire with a prototype
production facility, has had
an upsurge in demand which
would require a considerable
scaling up in order to meet their
manufacturing requirements.
They have taken the decision to
grow as a design house, investing
heavily in high-level knowledge,
innovation, leadership and
management skills, and will be
outsourcing their manufacturing
facilities locally, to meet the new
demand requirements for 2019.
Contingency planning is
now starting to emerge as Brexit
uncertainty becomes more of a
concern for manufacturers and
I sense a mood of resilience. In
the words of one manufacturer:
“give us some solutions and let
us get on with it!”
42 www.manufacturingmanagement.co.uk
Colin & Linda McKie /stock.adobe.com
/www.manufacturingmanagement.co.uk
/stock.adobe.com