Manufacturing Technologies Association
NEC Birmingham - 21 April 2008

Introduction

Good morning, I'd like to begin by thanking Geoff Lloyd and Graham Dewhurst for inviting me to open MACH 2008. It is a privilege for me to be asked to open a show that is showcasing innovative, world-class, UK high value manufacturing capability.

First off, let me welcome our international visitors who are here on UK Trade & Investment supported inward mission groups from Brazil, Russia, India and China. As well as meeting companies at the show, you are visiting a number of UK manufacturing companies. I wish you an enjoyable and very productive visit.

As someone who comes from the Black Country in the West Midlands - the home of the Industrial Revolution - manufacturing is coded into my DNA.

Success in manufacturing is vital for the UK to be a successful economy and I am delighted to see the world beating UK manufacturing excellence on show at MACH 2008.

The creation of my department - the Department for Innovation, Universities and Skills - is the first time that any UK government department has been formally responsible for leading on innovation across all sectors.

Last month, we published a White Paper: 'Innovation Nation' which sets out how essential innovation is to the UK's future economic prosperity and social wellbeing. The White Paper represents a bold ambition to make the UK the best place in the world to be an innovative business - to help innovation flourish across every area of the community and economy - and in particular, high value added businesses.

Innovation Nation also highlights the need to innovate in our public services and highlights opportunities for Government to drive and become a better customer for innovative products and services.

UK Manufacturing Capability

Manufacturing makes a huge contribution to the UK economy providing around 3 million high quality jobs and generating over half the UK's exports.

The UK is the word's 6th largest manufacturer. The manufacturing sector adds over £150 billion a year to the UK economy and accounts for three-quarters of all business R&D.

Renishaw

Of course, manufacturing is constantly changing and evolvingtake Renishaw, who I visited at the EMO Machine Tool Exhibition in Hannover, two years ago. Based in Gloucestershire, they produce measuring tools and I look forward to a tour of their stand.

Innovation

Renishaw's experience is not unusual. In areas such as design, simulation and testing, robotics and systems integration, plastic electronics, sensors and instrumentation, nano materials and composites, UK businesses have critical know-how and intellectual property.

We have no shortage of good concepts and designs coming out of our universities and research bases but there's more we can do to create wealth from this and help turn ideas into new products and services.

Here, Government can do more to support UK business innovation, for example through greater Research Council focus on economic impact and strengthened links with the DIUS sponsored Technology Strategy Board.

The Innovative Manufacturing Research Centres and Grand Challenges, established by the Engineering and Physical Sciences Research Council, represent a significant research resource for UK businesses which have an interest in the latest developments.

And the Manufacturing Advisory Service can assist companies improve their business processes, develop their workforce and procure more business.

Skills for the Manufacturing Sector

There's a lot of good work going on to make the most of ideas generated in universities, businesses and our research base. But we must also ensure that this country has the right skills-base.

This is a passion that I know we share. The MTA are strong advocates for skills as my colleague, David Lammy, recognised at your annual dinner in January when you signed the skills pledge.

Skills and innovation will be key elements of the review of the Government's manufacturing strategy, which my colleague, John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform announced back in November. The review aims to ensure that the Government is providing the right framework of support for manufacturers, to maximise their contribution to the UK economy.

Sector Skills Councils covering the manufacturing sector, such as SEMTA and COGENT, play a key role in this agenda. They are responsible for articulating the future skills needs of their sector, ensuring that the supply of skills and qualifications is driven by employer needs, and raising employer ambition and investment in skills.

And both the Train to Gain service and the Apprenticeships programme are helping employers to influence the skills of their workforce and employees and students to get the skills they need to work in this sector.

The National Engineering Apprenticeships programme is one of the largest, with 17,000 young people currently enrolled on level 3 courses. We need strong links for young people especially into engineering - as three quarters of young people don't know what engineers do.

Finally, on the skills front, the new National Skills Academy for Manufacturing is now providing sector-specific development programmes for trainers and assessors and are accredited against new national standards.

International Reach of Manufacturing

UK manufacturing companies increasingly operate internationally and you have been pioneers in developing business, selling and often manufacturing in major high growth markets such as China, Russia,India and Brazil.

I know that UK Trade & Investment helped the MTA open a representative office in Ekaterinburg in two years ago and the former DTI assisted the MTA in establishing the office in Beijing. UKTI is building on its existing work with a major international marketing strategy to highlight advanced engineering capability. It has chosen India to roll out the initiative with Digby Jones formally launching it in New Delhi in January. In May, UKTI will hold a series of seminars across India in Bangalore, Pune and Chennai with advanced manufacturing being one of the major themes. I'm glad to hear that MTA and other advanced engineering trade associations will actively participate and will run associated missions to coincide with these events.

Concluding Remarks

Advanced manufacturing is at the heart of the Government's innovation, skills and international trade agenda. MACH 2008 will showcase some outstanding businesses and enable you to forge new international links to help the UK economy and future prosperity.

The UK possesses a unique combination of manufacturing innovation and global reach that can help international companies build and grow their businesses. I look forward to new relationships being fostered this ,to further the link between the MTS and government and wish the show every success.