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Alan Johnson MPThe Launch of the Cast Metals Federation |
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As the former Minister for Competitiveness, and now as the Minister for the Regions, I am absolutely delighted to be here today in the West Midlands, our industrial heartland, for the launch of the new Cast Metals Federation. All industries need good, strong and effective representation if they are to contribute to, and influence, public policy. The castings sector is no exception, and I am very pleased to see that just like the companies you represent, you have also adapted and changed to meet the different circumstances and new challenges facing you today. That transition will not have been easy. I'm sure it took a great deal of patience and good planning to bring together the three existing trade associations into a single Federation with a unified management structure. I'm sure it was the right thing to do and that the sum of the parts will add greater value and enable the Federation to deliver and exceed its members' expectations. The castings sector demands a strong representative body. You don't need me to tell you that the castings industry, along with other types of metal forming, is a vital and important part of manufacturing industry. And make no mistake, manufacturing is vitally important. Manufacturing matters. It matters to me; it matters to this government; and it matters to the future prosperity of the UK. Manufacturing accounts for around one fifth of our national income, and about £150 billion of output per year. It employs around 4 million people directly and a further two and a half million in the services sector which supports manufacturing. Manufacturing also accounts for around 60% of the UK's exports of goods and services, so no matter what the pundits say, manufacturing is as important now as it ever was. But of course I fully recognise the difficulties that UK manufacturers and exporters are now experiencing primarily because of the slow down in the world economy, the weakness of the Euro and ever increasing competition in the market place. No one is immune from these problems and the castings industry has suffered its share of closures and job losses as it adjusts. But there are also opportunities to exploit, much of it driven by innovation and the adoption of new technology. The challenge is to create an environment in which all businesses, large and small, can seize the opportunities presented by the knowledge economy. Our aim is to help British business succeed in the global economy. All of these issues will be discussed at the manufacturing summit to be chaired by the Secretary of State on December 5th in Birmingham. I firmly believe that that the UK economy is better placed to respond to world economic developments than at any time in the past. And the Government's policy framework will, I am sure, continue to deliver a degree of economic stability. Our job is to support industry by providing the conditions that encourage the long-term investment required to allow companies to adapt to economic change. We are committed to building the conditions in which a strong and successful manufacturing base can thrive. That is why we are continuing to support the castings industry. I was extremely pleased to see that the Cast Metals Federation has responded so positively to the competitiveness analysis study on the sector that was completed for the DTI earlier this year. And that as a result, we are providing grant support to a new programme of work that the Federation is leading that will contribute over time to the improved competitiveness of the castings industry. Engaging the industry through the planned awareness programme; addressing the data and statistical information necessary to better understand your industry's performance; and the use of best practice case studies, are all important features of the action plan. It will help the Cast Metals Federation assist not only its members but all companies in the castings sector to improve their productivity and performance. It will also build on the existing projects that the Department is already supporting and in which the Cast Metals Federation is closely involved. Both the e-commerce project with its e-toolkit for the metal forming and finishing sectors, and MetformEx, the metal forming export focal point, are crucial projects aimed at helping the castings and other metal forming and finishing sectors to improve their performance. The recent export mission to Sweden is clear evidence of the intent to be proactive and make things happen. The Department's support for manufacturing is undiminished. On the broader front we are also investing £15m in a new manufacturing advisory service to spread best practice which will include a centre of manufacturing excellence in every region. And in addition, the DTI and one of the RDAs are contributing funds towards studies aimed at establishing a metals centre of excellence. When this comes to fruition it will further stimulate innovation, research and development as well as being a source of advice and information to the metals sectors. We also have other schemes to encourage innovation and collaboration with the science base and provide a range of regional and local support either directly or through intermediaries such as the Small Business Service and the Business Links. But Government also needs to adapt, and make what support we can provide more accessible and understandable. That is why we are also reviewing both the structure of DTI and its support for business. Those reviews are coming to a conclusion and will undoubtedly result in further improvements in the way the department operates. We will still aim to maintain the partnership between government and manufacturing, which brings me back to why I am here in West Bromwich this morning. All of what I have said about the importance of manufacturing and its need to innovate and change applies just as much to Trade Associations. Effective Trade Associations need to be just as businesslike as the companies they represent if they are to succeed. Coming together to form the Cast Metals Federation is a clear demonstration of a forward looking and dynamic sector seeking to improve and strengthen its representation. The Cast Metals Federation has a vital role to play in promoting best practice, helping its member firms become more competitive and contributing to the formulation of effective public policy. Its willingness to co-operate and collaborate with other trade associations, with professional bodies and research and technology organisations will also be important to its future development. By becoming an even more effective champion for the castings sector it will be good for the federation, good for member firms, good for industry and good for the economy as a whole. I am therefore very pleased to be a part of this formal launch of the new Cast Metals Federation. I'm sure it will go from strength to strength I wish it and its members every success in the future and commend its continued close and good working relationship with the DTI. |
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Other speeches by Alan Johnson MP
(the following are available from the archive) |
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