Rupert Martin, Group Chairman of Dextra Group plc. discusses…
Thinking back ‘Made in the UK’ has historically been synonymous with reliability, quality and compliance with the necessary standards expected when running a business in this country.
In reality, a vast proportion of upmarket lighting products actually originated from mainland Europe, supplied by substantial manufacturers. UK based manufacturers with a few exceptions, largely supply commodity products.
Is it possible to reverse this situation? In some respects ‘ yes’ but as usual there are a number of caveats to overcome.
For starters, to physically make a product successfully and economically, quality equipment is required. Generally our industry has starved itself of resources to enable it to purchase equipment necessary to do the job. Multinationals and small, so called, OEM’s are happy to import from low cost economies, where little or no investment is required and prices are cheap.
Secondly, the next hurdle to contend with is health and safety. Of course we want UK factories to be safe environments for our employees but we live under constant threat of sanctions and dictat from Europe – just imagine that in China or India!
“Problems on the Continent with the demise of major companies are bound to destabilise an already difficult situation”
Thirdly, competition – the British culture of constantly driving prices south has discouraged new investment and the recent mass importation, in particular of Chinese, inferior LED products, seized on by the supply chain has discouraged new manufacturing start-ups.
The downside of this is regrettably the nation’s manufacturing expertise has disappeared East. Does this explain why virtually all multinationals are struggling to make an acceptable margin? The result is in most being for sale or undergoing ‘strategic’ reorganisation. Problems on the Continent with the demise of major companies are bound to destabilise an already difficult situation.
Let’s not get too depressed. At least the revolution of LED gives opportunities to those willing and able to find markets where clients do prioritise efficiency, quality and service. This is not easy as constant redesign and retooling is necessary to keep up with fast moving technology against a backdrop of a constant deflation in pricing.
Finally, let’s face it – manufacturing is hassle.
So dear readers, how come the writer is still involved with so many pitfalls? As Paul Simon wrote “Still crazy after all these years”. It helps!
