Siemens boss: Government must do more to support UK industry

York, UK – Robin Phillips, financial director at Siemens Industry UK Group, has called upon the Government to do more to help the revival of the UK manufacturing sector.

At the annual Siemens Process Automation User Conference in York, Phillips urged the Coalition to continue the previous Labour administration’s strategy to increase the status of manufacturing within the UK economy.

“With manufacturing accounting for 13% of UK GDP, it will be interesting to see what the present Government means when it talks about the aim of re-balancing the economy away from the dominant financial and service industries. The jury is still out in terms of how much and by when?

“But I welcome the realisation from our political leaders that the efforts underway must continue to be supported. I am also heartened by recent figures which point to a strong fight back by the manufacturing sector - despite the harsh economic climate that has prevailed since 2007.”

Phillips went on tto highlight the need to address the issue of a potential shortage of engineers in the years to come and the requirement both to up-skill the current workforce as well as replacing the skills of an engineering generation that will retire over the next couple of decades.

THe UK, he said, needs to deliver 600,000 engineering apprenticeships over the next 10 years, as well as vastly increasing the numbers of current engineering students.

“We will see only 5% of UK students taking a university engineering course this year. In comparison, China and the USA develop significantly more engineering graduates on an annual basis to ensure an engineering skills vacuum does not develop,” said Phillips.

“Together, the Government and the business community need to harness their thoughts to encourage schoolchildren to see the merits of ’making things’, and to view engineering as a rewarding and stimulating career choice,” he added.

Emphasising the importance of continued and increased investment levels for both R&D initiatives and hi-tech manufacturingprocesses, the Siemens executive urged a review of the current UK tax and regulatory regimes as they apply to innovative manufacturing businesses.

“Perhaps thought needs to be given to tax incentives for SMEs, as well as simplifying the legislative environment in which we expect companies to operate?,” he said.

Finally, Phillips called upon the UK banking sector to get behind its manufacturing counterparts to support the new and growing innovative companies that will fuel future economic growth and create jobs in the UK. He says:

“The advent of the Green Investment Bank and the newly formed Local Enterprise Partnerships will be very important in helping companies access funds as they need them.

“The banks should show support to manufacturers of all sizes, particularly SMEs, as their assistance and encouragement will help drive the ambition and innovation of the UK’s manufacturing base as it competes on a global stage against the traditional powerhouses - as well as the new emerging markets.”