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Stephen Timms MPPackaging Industry Conference |
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Good morning. I am delighted to welcome all of you to the DTI Conference Centre for this seminar on key issues affecting the competitiveness of the UK packaging industry. Today marks the launch of the results emerging from "Packaging in the Third Millennium" – the first time that the DTI has supported a competitiveness study across the whole of the packaging industry. I am encouraged by the way the DTI and the industry have worked together to develop this initiative. I welcome, in particular, the close co-operation between Pira International and the Packaging Federation on this work. The report brings the various parts of the packaging industry into a sharper focus and sets them in an international context. I want to set out today what the DTI is doing to support the packaging industry's efforts to drive up its productivity and competitive performance. You will, I know, be discussing the key challenges and opportunities facing the industry during the plenary session later this morning. Manufacturing Matters But first let me put that debate into context. If you compare performance of UK economy with the position in France, Germany and the USA, manufacturing matters. My Government colleagues and I believe it is vital to promote and champion manufacturing and to help manufacturers fulfil their potential in the UK. That is why DTI is developing a far stronger partnership with firms, their employees and their unions than has ever been the case before. Manufacturing is a powerhouse in our economy and is crucial to our country's prosperity now and in the future.
The Government's commitment to building a high value-added, high technology manufacturing sector is made clear in the Manufacturing Strategy we published in May – the first coherent Government strategy for manufacturing for over 30 years. The Strategy gives a sound basis for stronger partnerships with industry and for more effective action. There is a consensus among all the main players – industry, Government, unions and stakeholders – on the right way forward. Packaging Industry Issues You don't need me to tell you that packaging manufacturing is a large and diverse industry whose role is crucial to the commercial success of consumer goods and industrial products. Packaging and its products touch on all our lives every day. It is inextricably bound up with all kinds of industries, both large and small. By its nature packaging is an industry, which depends on the fortunes of downstream customers in the supply chain. It is a large sector, in terms of size, the UK packaging market in 2001 is reckoned to be worth £9.2billion and the industry employs around 100,000 people. The industry faces some tough challenges, not the least of them stronger competition in national and international markets and the impact on packaging suppliers of customers switching production between different countries. Packaging Sector Research Projects To enable everyone – companies, intermediaries and Government – to be in a position to take strategic action, we need first to understand better the issues affecting this diverse sector's productivity and competitiveness. That is why the Department has been supporting several areas of research into the packaging sector. The purpose of these projects is to increase Government's understanding of the industry and to help the companies and intermediaries focus on the key issues. So what form has this research taken? "Packaging in the 3rd Millennium" report First, Pira has just completed the study of "Packaging in the Third Millennium". This work brings together the results of earlier studies on the various material streams in the sector – plastics, metal, glass and paper. It also presents new material and makes some international comparisons. One of the things that struck me in the report is the diverse and, indeed, fragmented nature of the packaging industry. Another is the list of key issues for the industry to address, ranging from the trend towards globalisation to the need to improve its image and attract able young people. There is a lot of scope for UK companies to gain competitive edge – for example, I am pleased to see the report highlights the development of a sustainable strategy for the supply chain as a key opportunity. And I agree with the report's view about the need for better quality industry data, to help give a clear picture of the industry's position. E-commerce impact assessment As the Minister responsible for e-commerce, I am pleased that DTI has been able to publish an e-commerce sector impact assessment of the packaging industry, which identifies some of the barriers and enablers of e-commerce adoption. The headline results show that 25% of packaging materials producers are not using e-commerce at all and another 57% use it only for messaging and marketing purposes. There is certainly scope for e-commerce to enhance business processes much further. Skills Mapping Project The Institute of Packaging will soon complete its "Mapping Exercise" of the UK packaging industry. This project is also supported by a DTI grant. It aims to develop a dynamic electronic database to help define the size and geographic distribution of the industry and to map the skills needs of the industry. The study is based on a survey in which almost three thousand UK packaging companies have taken part. The results will be available early next year. And I look forward to hearing, in the near future, what the industry proposes to do in response to the report findings. Faraday Packaging Partnership Last but not least, I would like to acknowledge the work of the Faraday Packaging Partnership in helping to promote R&D. Based on the universities of Leeds, York and Sheffield, the Partnership has chalked up a number of achievements since it began five years ago. To mention just three, they include:
Industry Forums So that is the research, which will give us a firm foundation to take forward future initiatives. But research alone will not improve productivity and competitiveness. The DTI is therefore already funding two centres of excellence from which producers of plastics and metal packaging materials can obtain advice on best practice: these are the Process Industries Centre for Manufacturing Excellence, known as 'PICME' for short, and 'MICE' - the Metal Industries Centre of Excellence. Each of these Industry Forums is a source of help and advice for participating companies to address manufacturing improvements. Clearly, there will be a need for more work in the future, both individual and collaborative. Taking the work forward Given the importance of the packaging sector and the nature of the current challenges and opportunities it faces, The Government and the packaging industry need to continue to work together to drive up its productivity. The Pira report is an important contribution. We see this as just the beginning. Pira is proposing a range of actions for consideration by industry and Government. It is an important strength of the analysis that it reflects consultation with industry organisations. We want now to develop a close working relationship, particularly through the trade associations, as we move into the implementation stage. But this Action Plan is not just for Government. Important actions need to be taken forward by industry and it is vital that those within the industry, especially its leaders, buy into this process. That is why it is so encouraging to see so many of you here today. I would like to acknowledge the hard work that has gone into the Pira report, and thank those responsible: in particular Ann Stirling Roberts and her team at Pira and Ian Dent and the staff at the Packaging Federation for their efforts. I know you all want now to hear what Pira and other presenters have to say, so I will conclude with my best wishes for a fruitful morning. I will be following, with great interest, the actions that emerge from this report. |
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Other speeches by Stephen Timms MP
(the following are available from the archive) |
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