What's Happening?
Manufacturers in the Midlands are urging the government to take coordinated action to address several challenges facing the industry. At a roundtable event hosted by MHA in Birmingham, industry leaders highlighted issues such as post-Brexit trade barriers, rising energy costs, skills shortages, and restrictive tax policies. Brexit-related red tape continues to complicate trade with Europe, forcing companies to rely on costly logistics solutions. Additionally, rising electricity costs pose a significant threat to businesses, with relief schemes criticized for unclear eligibility criteria. Skills shortages and retention challenges are also pressing concerns, with larger firms investing in apprenticeships while smaller businesses await government clarity.
Why It's Important?
The call for government action is crucial as the manufacturing sector faces mounting threats to its competitiveness. The impact of Brexit, combined with soaring energy costs and skills shortages, could lead to reduced production and potential relocation of manufacturing activities overseas. The industry's demand for stable tax policies and investment incentives highlights the need for a supportive environment to foster innovation and growth. Addressing these challenges is vital for maintaining the sector's contribution to the economy and ensuring its long-term sustainability.
What's Next?
Manufacturers are looking for practical government support to ease border friction and provide clarity on energy relief schemes. The industry is also seeking targeted incentives to stimulate investment and innovation. The full report from the roundtable event is expected to be released on October 20, which may provide further insights into the sector's needs and potential government responses.
Beyond the Headlines
The ongoing challenges faced by the Midlands manufacturing sector underscore broader issues related to post-Brexit economic adjustments and energy policy. The industry's concerns about net zero policies driving production overseas highlight the need for balanced environmental regulations that do not compromise competitiveness. Additionally, the focus on retraining older staff and planning succession for key roles reflects a shift in workforce management strategies.
