Originally published @ 10:06 am, Sat 23rd Jan 2010
What has been difficult for manufacturing in this country has been the relative high value of the pound, which has helped the financial sector and the consumer of goods, services and foreign holidays, but meant manufacturers have to have high-quality, high-value products to survive and especially to export.
The pound has fallen during the recession by about 30% compared to other main currencies and this is part of the star of the recovery.
As for high-value manufacturing, South Derbyshire has a range of such companies which such goods and products – Rolls-Royce (many of whose workers live in South Derbyshire), the Derby railway technologies cluster, Toyota, JCB (engines made in South Derbyshire), Nestle (new coffee product made in Hatton to serve all of Europe) and concrete specialists further south.
The creative sector is also very important, which computer games software written in the Erewash area forming a significant part of the world’s market.
Interesting to note too, that constituents are suggesting that recent practices of firms exporting some of their source components has hit quality and timeliness of supply, and currently firms are drawing back from this.
Focussing on quality, and anticipating the needs of the future – in particular the growth of the environmental technologies is important.
As for take-overs, there is a concern that the owners of shares, including pensions funds, do not exercise the right kind of responsibility and accountability, worrying more about market share price rather than the wide range of concerns for a company to develop.
And the burden of debt that firms have to carry to pay-off the old shareholders is also a concern.
A good management against a wider range of concerns than share price is needed.
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A report commissioned on Derby and Derbyshire manufacturing suggests the Train, Plane and Automobiles sector could grow by 15,700 jobs - http://www.thisisderbyshire.co.uk/news/15-700-JOBS-PREDICTION-COUNTY/article-1745638-detail/article.html
with the railway sector potentially having the largest increase.
Knowing something of the challenges we face in the Derby railway cluster, perhaps the report is optimistic, but we should strive to meets its best-case scenario.
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