John Pearce, CEO of Made in Britain, explains how British engineering companies are shaping the post-Brexit, post-pandemic economy
In May, UK manufacturing growth hit a 30-year high, as the relaxing of lockdown measures unleashed pent-up demand. This was music to the ears of everyone who cares about the strength of the sector and the renewed focus on exactly where goods come from and how safe they are. This had to be a sign that the worst economic effects of the pandemic were drawing to a close, and that making goods in this country and expanding our overall capacity was happening, or at least the green shoots were emerging.
In the months since then, as our country began returning to some form of ‘normal,’ Made in Britain has been inundated with member companies describing order books that are full to bursting and instances of demand far outstripping supply. The increasing appetite for British goods post-Brexit and post-pandemic, has also been reflected in our membership which has been growing at its fastest-ever rate as our community seeks to capitalise on rising domestic demand for British made.
Indeed, over the last 18 months, there has been genuine, measurable growth and real progress in British manufacturing. We have seen evidence for cautious but very real optimism about the future of our industry in general, and the engineering sector in particular - a clear signal that British innovation is not just alive and well, but thriving.
More recently, conversations have been dominated by the HGV driver shortage and the supply chain disruptions affecting companies up and down the country. This serious on-going logistics crisis is just the latest in a series of extraordinary challenges for British engineering firms who’ve already been weathering the upheavals of Brexit, as well as the unprecedented limitations and restrictions of the lockdowns.
One of the positives to be gained following more than a year and a half of uncertainty is being compelled to look into what can be produced on our shores. A recent survey of Made in Britain members showed that over a third have completely localised their supply chains.
And our annual ‘Buying British’ research speaking to consumers and businesses to understand purchasing motivations and factors affecting shopping habits and attitudes towards British goods, showed that the majority of both consumers and businesses are now more likely to buy British goods than before the coronavirus outbreak.
Eight in ten businesses and consumers would happily pay more for products made in this country, while two-fifths of consumers and two-thirds of businesses would prefer to buy British regardless of the cost.
Britain’s engineering sector has a long-held reputation for quality, reliability and innovation. Within our membership - of which around a fifth are from the engineering sector - we have numerous examples of companies perpetually conceiving, creating and implementing new ideas and technologies.
Yorkshire-based Heald is a pioneer in hostile-vehicle mitigation systems. Following a growing number of attacks on high-profile bridges, the company set out to find a new way to better protect these structures. The challenge was that effective perimeter protection options had always been limited due to the impact on a bridge’s structural integrity.
Heald’s Bridge Bollard System, launched last year, found a solution to the problem. The system, consisting of fixed pillars on individual base plates bolted together, has revolutionised the bollard market as it requires a depth of just 50 millimetres.
Engineering supply firm Heap and Partners has been making valves for more than 150 years and has proven that a company is never too old to evolve and embrace the new. Founded in 1866, the company is now introducing QR codes and cloud-based technology into its manufacturing process. A move Heap and Partners believes will accelerate growth and create jobs.
Innovation is embedded in the business DNA of British engineering firms. That flair, together with the other hallmarks of the sector - quality and reliability - are jewels in the crown of industry in this country. Meanwhile, internationally, ‘brand Britain’ holds a value that hasn’t faded, with British businesses and consumers keener than ever to buy home-grown products.
On top of that, buying products that don’t have to be transported into the country from 1000s of miles away has obvious measurable benefits for the environment, so it’s not surprising to see a preference for products manufactured or sourced locally.
The government has moved their British-made procurement target from five percent up to fifty percent and we want to help them move that needle even further with proximity and quality our absolute priorities.
We know that British consumers want to buy more British goods, but confusion over provenance can be an obstacle. Some four in ten consumers say they can’t tell if a product is made in this country or not. When asked about the car we drive, for instance, we tend to know the country that owns the brand but not where the model was built.
To help cut through the confusion around product origin, manufacturers should make it as easy as possible for consumers and businesses to identify and buy British. The registered Made in Britain accreditation, for example, certifies a product’s place of origin while also recognising the producer’s ethical and sustainable business practices. The mark can also serve as a product ambassador around the world - an easy way to identify where a product is from, and who really takes responsibility for it.
The extent of the many business challenges faced by engineering firms and other manufacturers makes it difficult to ascertain whether things will correct back to normal by next year, or even the year after that. However, what we can be sure of is the incredible longevity in the British engineering community.
It’s not unusual to hear of British engineering firms that have been around for 100 years or more. Some of these companies have survived one or even two world wars and multiple recessions. They have resilience embedded in their DNA and will be able to adapt to whatever comes next.
British innovators will continue to be at the forefront of shaping the post-Brexit, post-pandemic economy. And as we usher in this new era, the spotlight will rightly grow ever larger on the ideas and the goods created on these shores - products that are made in Britain.