Call for 'clear roadmap' for UK manufacturing

Mar 3 2010 by Jez Davison, Evening Gazette

A HARTLEPOOL electronics maker that announced higher-than-expected profits today has urged policymakers to provide a “clear roadmap” for UK manufacturing.

Stadium Group welcomed Business Secretary Lord Mandelson’s pledge this week to invest in emerging green technologies and hi-tech manufacturing skills - but said red tape remained a millstone around industry’s neck.

The group, which has shifted more of its operations to the UK in the last twelve months, said the country could compete with lower-cost Asia if the next Government provided a “clear regulatory framework” that allowed companies to fast-track R&D projects to the market.

Stadium chief executive Nigel Rogers said: “We need a clear roadmap so that businesses can make sound investment decisions. It would be good to know what the regulatory framework is going to be (soon after the election).”

He said he was encouraged by the UK’s apparent commitment to low-carbon technologies, which he described as “a good story for UK manufacturing”.

“Previously many businesses based their growth strategy around their Asian operations and the British operations were just an extension of that. Now that is changing.

“Our UK operations have the potential to grow just as quickly as our operations in China.”

The UK now represents 40% of Stadium’s international operations - up from 20% 12 months ago, which has provided extra work for Stadium’s Hartlepool base. The company announced pre-tax profits of £2.50m in the year to December 31 - down 11.2% on the previous year but ahead of analysts’ expectations of £2.2m.

Revenues nudged down 2.2% to £46.58m but the group remained optimistic, claiming that current trading is “substantially ahead” of the same period last year.

The group said new contract wins had boosted revenues during the second half of last year and that green technologies would provide further opportunities for expansion.

“Developments in renewable energy, smart metering and low energy lighting are examples of this process, and each of these sectors offer opportunities for electronic manufacturing services (EMS) providers,” it said.

“Our skills and experience in power supply design and manufacture represent a distinct advantage, especially in conjunction with competitive sourcing from our facility in Asia.”

The group also said demographic changes and improvements in medical practice were creating openings for new technologies in patient care, mobility and cosmetics.