CBI pressures government over plight of UK manufacturers

The Confederation of British Industry (CBI) have published a strategy document to put pressure on Trade Minister Patricia Hewitt to help the beleaguered manufacturing industry.

In "A Strategy For Manufacturing?" the CBI advocates for a unified regional and central government strategy through "a strong DTI that is championing the cause of manufacturing right across government and beyond".

The recession-hit sector is demanding a series of government reassurances in areas such as a long-term strategy of regeneration, an assessment of the impact of future legislation on exports and a pledge to develop the industry's skills base.

According to the report: "The UK manufacturing industry would welcome further strategic direction to assist this process and a government commitment to play its part in putting the necessary building blocks in place."

Manufacturers surveyed by the CBI anticipate a plus-minus balance of one per cent which, though far from healthy, equates to the first plus balance since July 2001. This represents a dramatic turnaround from December's three-year low of minus 28 per cent.

The move by the CBI comes in the wake of reports that the UK has posted a record trade deficit of £33.5 million. However, despite manufacturing output volume falling over the last six months, the dip is expected to remain at a stable level over the next quarter.

Doug Godden, the CBI's Head of Economic Analysis, said: "In this survey we appear to be seeing the first signs that the severe squeeze on manufacturing is starting to ease. But it would be wrong to overstate the good news."

The CBI hopes that the government will act promptly to halt the decline in export demand that showed a balance of minus 40 per cent for February – indicating that there are some dark days ahead for the industry.

(GMcG)