Banks aid manufacturers on road to recovery, says boss
A senior West Midlands banker has given her vision of how to get the region's manufacturing heart beating healthily again after the coronavirus pandemic.
Jo Harris, Lloyds Bank managing director and Lloyds Banking Group ambassador for the Midlands, said all banks have a vital role in keeping businesses and individuals financially stable at a time of great difficulty for many.
She said she was eager to help manufacturers across the West Midlands, Shropshire and Staffordshire accelerate their recovery and build resilience.
"The Midlands was the beating heart of the Industrial Revolution. It was the birthplace of large-scale manufacturing. And now, from automotive to brewing, ceramics and textiles, the region is home to some of the most iconic brands enjoyed around the globe. However, the sector has been hit hard by Covid-19," she said.
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In its latest report, Make UK reported that, although more than 90 per cent of manufacturers nationwide have been able to continue operating throughout the pandemic, only 16 per cent say they are doing so at the same level as the start of the year. Indeed, three in 10 expect it to take longer than 12 months before they return to that level of trading.
Ms Harris said: "One of the ways we’re helping is through our work with the newly-formed Midlands Manufacturing Resilience Commission. Led by the Coventry-based Manufacturing Technology Centre chief executive Dr Clive Hickman, the commission has the support of West Midlands Mayor Andy Street.
"It will review and report on the region’s manufacturing landscape and performance during the Covid-19 crisis to inform recommendations about how the sector can realise its future potential. In time, we’ll be sharing these recommendations with our manufacturing clients in the region and helping them to take advantage of the support available."
Ms Harris added that the Midlands was home to a number of centres of excellence at universities that were at the forefront of technological advances.
She said: "These expert teams are global leaders in research and development, so it’s vital that we listen to their suggestions when considering how we can best support the recovery.
"As well as sponsoring the commission, we’ve contributed to 15 virtual round tables that have attracted more than 100 industry professionals and policy makers. As part of these discussions, we’ve heard from sector specialists and offered our expertise and insight in areas such as access to finance, working capital and capital expenditure.
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"The round tables have thrown up many important issues; helping small manufacturing firms to invest in research and development, the need to prioritise the teaching of science, technology, engineering and mathematics in our schools, and the value of apprenticeships for the future of the industry.
"Attendees have also shared best practice, and swapped advice for boosting productivity, with the focus on driving the manufacturing sector to where we want it to be, and how we can get it there.
"But above all, they have demonstrated a huge degree of passion and regional pride in manufacturing, and unanimous agreement that its future remains in the Midlands."
Ms Harris said she had been impressed at how many companies adapted their work during lockdown in order to keep revenue coming in.
"By nature, manufacturers are adaptable and innovative, as demonstrated by the way they have reacted during this difficult time – from supporting the construction of Nightingale hospitals to answering the urgent call for the production of personal protective equipment.
"We recently supported Bromsgrove-based Kimal, a manufacturer of medical equipment supplied to hospitals around the world, with the working capital to help it ramp up production of procedure packs and medical devices for treating Covid-19 patients across the UK.
"After creating a specialist Nightingale procedure pack for the temporary London hospital, with our support it has focused one of its manufacturing facilities entirely on producing equipment for the NHS, with production levels rising to 14,000 packs per week.
"While for some businesses the pause button has been pressed, manufacturing as a sector continues to step up to the plate. Looking at problems and finding solutions."
She said that when looking at the road ahead for manufacturing across the Midlands, there were already some early signs of recovery.
The IHS Markit/CIPS manufacturing purchasing managers’ index grew for the second consecutive month in July, as lockdown restrictions continued to ease in the UK and many furloughed staff returned to work. And the MTC recently reported a record number of applications from prospective apprentices, with more than 700 people looking to join its programme.
Ms Harris added: "The uncertainty caused by Covid-19 remains, but we are confident the commission’s recommendations will provide a clear route to recovery and beyond when they are presented to the Government this autumn.
"In the Midlands, industry leaders and experts are setting a new pace, and the next generation of skilled workers are waiting in the wings. That’s why I believe that, despite everything we have been through, the future of manufacturing is in safe hands."
