Minister says NI must compete on quality not price

Enterprise Minister Angela Smith today painted a positive outlook for Northern Ireland's manufacturing sector over the next decade.

The announcement of the government study into the future of the sector and the Minister's response was made during a visit to Marlborough Engineering in Belfast's Harbour Estate.

The Minister said that the establishment of a regional Science/Industry panel is one of a series of measures which will have a positive impact on the sector in coming years.

The research found that while employment in the manufacturing sector has declined by half in the last 20 years, down from 180,000 to 90,000, around 2000 jobs have been created in the sector on average each year since 1998.

Manufacturing output has grown by over 40% between 1996 and 2001, and the sector has continued to provide valuable jobs in areas of higher unemployment.

The research forecasts that key factors in success for the sector will include innovation and design, development of products with niche markets and high added value and knowledge based products and processes.

The Minister said: "Manufacturing will remain an integral part of the Northern Ireland economy. It is currently responsible for over £4.5 billion of export sales and generates almost 30% of the total economic activity of Northern Ireland business.

"However, it is clear from this very detailed report that manufacturing is changing fundamentally. For manufacturing companies to survive, they must move up the value-added chain and embrace knowledge intensive, higher skilled practices. Northern Ireland must compete on quality, not price."

The Government's future approach to the manufacturing sector includes:

• the establishment of a new regional Science/Industry panel to develop a more productive relationship between industry and the Northern Ireland R&D and science/technology base;
• the use of the new Skills and Science Fund to exploit a number of niche technologies in which NI has a comparative competitive advantage;
• the development of a new framework for innovation to replace the existing Regional Innovation Strategy and Action Plan, and detailed evaluation of current schemes to promote R&D.

Mrs Smith concluded: "Manufacturing has traditionally played a huge part in Northern Ireland's economy, beginning with the ship-building and linen industries. The future of our manufacturing sector is represented by indigenous companies like Marlborough Engineering, situated in the shadow of birthplace of the Titanic, and using innovation to design products for export markets around the world."

The report 'The Future Role of Manufacturing in Northern Ireland' and DETI's Policy Response to the Report are available on www.detini.gov.uk

Marlborough Engineering designs and manufactures precision engineering components for the aerospace, automotive, construction and plastics industries and also manufacturing bespoke machinery.

(SP/GB)