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The Rt. Hon. Patricia Hewitt

"Made in Sheffield" Dinner

The Rt. Hon. Patricia Hewitt

Sheffield


Thursday, November 29, 2001


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I am delighted to be here this evening. It gives me an opportunity to join with you to celebrate Sheffield industry.

I understand that I follow in the footsteps of various colleagues – including one of my more colourful predecessors – Peter Mandelson – who came here in 1998 as Secretary of State for Trade and Industry.

Much has changed even in three years and I am not sure that Peter would recognise the city. Sheffield is transforming and I am pleased that I will be able to meet some of the people here today who are responsible for those changes – including Jon Emery and Loyd Grossman who will be able to tell you more about the investments in the structure and culture of the city.

These investments are making a real difference – improving the lives of people in Sheffield and South Yorkshire. They represent the dynamism and ambition of people responding to the demands of today's economy. Recognising that skills, technology and a good quality of life will help to attract and retain good people and good jobs.

Importantly, these changes are accompanied by growth in the region's economy.

Unemployment in Sheffield has fallen by 28 per cent since Peter spoke at this dinner in 1998. And more jobs are being created. Tomorrow David Blunkett will be announcing the creation of 250 new jobs in Sheffield with an expansion of the Work Permits division of the Home Office.

The new recruits will enable Work Permits UK to provide a faster, more effective service, including meeting very specific skills gaps where, on a temporary basis, particular business sectors need staff from overseas to fill a niche or provide training.

Sheffield has one of the fastest growing economies in the UK. It is attracting inward investors from around the world.

And it is demonstrating that enterprise does not necessarily mean leaving behind everything from the past – not by losing its sense of identity but by building on its history.

Sheffield has always been seen as a strong manufacturing city – and you should be proud of that tradition – "Made in Sheffield" is a brand of quality known across the world.

But I realise that this has not been an easy time for manufacturing. And so it has not been an easy time for South Yorkshire. I understand the challenges of ever more intensive overseas competition. Of new technologies and innovation. And of the weakness of the euro.

With my colleagues in Government we have tried to help you through this – to ensure that "Made in Sheffield" continues to be stamped on goods sold across the world.

This means providing an economic framework to promote long term growth. Since 1997 economic stability has been our goal. Inflation is now at its lowest for over 30 years. Long term interest rates are at their lowest levels for 35 years.

And it means helping individual manufacturers adapt to the changing environment. It means setting up regional structures which respond to the needs of local businesses and help to attract jobs and investment.

Manufacturing matters. It matters to our economy, to the people who work in it – over 100,000 people in South Yorkshire – to all of us who enjoy its products. And I am determined that under my leadership the DTI will be a dynamic department on the side of manufacturing and manufacturing workers.

My department has a clear role in helping UK businesses be more productive and competitive. And I have just announced a number of changes to the department to ensure that we are more business-like. That we have a clear focus on three strategic priorities – innovation, enterprise and competitive frameworks.

Over the next few months we will be reorganising the department, bringing in business expertise to improve the way in which we serve business. The changes will help us become truly customer-focused – better able to identify where we can really make a difference and better able to deliver.

As part of the review which has led to the changes, we have clearly recognised that there is much we can achieve at the national level. But sometimes we can work more effectively by implementing them at a local level – whether that is across Yorkshire and the Humber, in South Yorkshire or in Sheffield. Through Regional Development Agencies and the Small Business Service, through regional, sub-regional and local partnerships.

I know that within Yorkshire there are historic rivalries – I'm not sure that anyone in this room would admit to supporting Leeds United. But with Yorkshire Forward there is an opportunity to move forward as a region. I will be catching up with Graham Hall again tomorrow when I will be speaking at lunch. And I will be congratulating Yorkshire Forward on their strategy to develop the whole region. Building on the strengths and expertise of each part of it to develop the whole.

South Yorkshire and Sheffield show that this approach works.

There is a lot of nonsense talked about the end of manufacturing – the idea there's a 'new economy' that will replace manufacturing. The truth is that new technologies are transforming every product and every service, every part of the production process and every sector of the economy. You only have to look around the region.

At the Advanced Manufacturing Park in Rotherham, where the first 20 acre phase of the project is about to start. I'm delighted that today Yorkshire Forward are announcing a public/private partnership with UK COAL to develop the Manufacturing Park at UK COAL's Waverley site - with a £12 million investment by the development agency.

The first phase of the site will include an Aerospace Manufacturing Research Centre. I am delighted that Tom Bell is here tonight. His company's investment in the Centre links Boeing – the largest aerospace and communications company in the world – with world class engineering research at the University of Sheffield. Creating a real feeling that South Yorkshire is moving forward.

The Metals Centre of Excellence in Rotherham is one of the key elements of Yorkshire Forward's plans to develop a high growth cluster of engineering and metal working in the region.

And it was timely that it was announced at the same time as AvestaPolarit made public its investment in its Sheffield site – giving a strong signal about confidence in the UK steel industry and in this region in particular.

There are too many people who seem to think that the steel and metals industry is not relevant today. In fact, it is an industry which continues to evolve to meet the demands of society and is relevant to some of the most dynamic areas of the UK economy.

Whilst the aerospace sector is coming to terms with the impact of September 11, it is encouraging that local businesses such as Fletchers, with a grant from DTI, and Technicut are continuing to invest in the industry. And the automotive industry benefits from close links with Sheffield Hallam University Materials Research Institute.

It is about making the most of the region's potential. The growing medical equipment cluster demonstrates this well. Although relatively small, it has a strong foundation on which it can grow. And it is also helped enormously by Medilink operating from Sheffield across the country.

Objective 1 funding and being in the top tier of the Assisted Areas is making a big difference to South Yorkshire. It is a seven year one-off opportunity which local partners need to seize to move the area forward.

But it can only help to attract investment as I am sure Don Lyon knows more than most. It takes a lot of hard work by agencies such as Sheffield First for Investment, together with Yorkshire Forward and my Department, to ensure that South Yorkshire is a magnet for investment. The fact that I am talking about companies such as Boeing and Insight shows the success of our approach

South Yorkshire is getting it right – making a strong business case for inward investment. For companies such as Insight – investing £67 million to build its European headquarters here in Sheffield, supported with financial assistance from my Department.

The connection between the science and research base and manufacturing is crucial to this. Helping to shift the focus from competing on the basis of cost alone towards high skill, high value added products and processes based on quality, innovation and know-how. By strengthening the science base we support the manufacturing jobs of the future.

Universities are working together as part of the White Rose Partnership and with business to turn scientific excellence into good business ideas. And that is critical. I want to see "invented in Britain" becomes "made in Britain" – I hope you don't mind me using your brand

That is why we are investing over £1 billion in our science base. Investing in the two Sheffield universities to ensure that they have the world class facilities and the funding to continue to be at the leading edge of scientific breakthroughs. And also to turn this to the real advantage of companies in the region.

Working with companies like Bethan Technology who received a grant of £48,000 to develop filters from natural fibres to treat industrial waste water. One of a number of technology based companies in Sheffield. Businesses such as Lightware Design and Jennic.

Technology is a driving force. And it can be a positive force for manufacturers.

But it can sometimes be frightening – the pace of change, recognising its potential. That is why we need to help individual businesses – to help them understand what is happening and how they can make best use of new technologies and innovations. Through the Manufacturing Advisory Service and the centres for manufacturing excellence we will help to transfer knowledge, know-how, new technologies, materials, best practice methods and processes.

Working regionally and nationally to help business face the challenges of globalisation and technology. To become, and in some cases continue to be, world class.

Looking at the achievements in Sheffield and South Yorkshire, I am confident that you will succeed – the nominations and winners of tonight's award should only confirm the quality of business in the region.

And I hope that we will continue to work with you so that "Made in Sheffield" remains a world renowned brand of excellence.


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