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Keeping business local for the benefit of the national economy
Written by Simon Hobbs on January 3rd, 2012 Posted in Product design

The British economy, as we are reminded on a daily basis, is going through tough times. Interest rates remain low, banks have a reputation for not lending to business and manufacturing industry is on its ‘last legs’.  However, while not having the growth of China or even Germany, the British economy is sustained by its innovation in niche markets. The example of the new Airbus manufacturing plant in Broughton North Wales (www.bbc.co.uk/news/business-15298547) and design and engineering facility in Filton near Bristol is testament to British expertise in these and other niche markets.

British design has long been recognised as being at the forefront of innovation and, combined with what remains of British manufacturing, where possible is surely going to play an important part in helping to the country to work its way through, if not out of, the current economic downturn.

In his article ‘Whys doesn’t Britain make things anymore? ‘of 16th November 2011 Guardian Economics leader writer Aditya Chakrobortty , writes of the Tyneside ship-building  town of Wallsend, ‘You still find industrial estates, of course, and they look the part: overalled men milling about, passing lorries. Only up close does it become clear that there’s not much actual industry going on’.

Many areas certainly have been stripped of their manufacturing base (two thirds in the last twenty years according to Chakrobortty), but take a turn down a local industrial estate and see what ranges of skills are on show. This local area employs engineers to cabinet-makers, rubber moulders to trailer manufacturers. Companies such as these have been the life-blood of the local and British economy for over a hundred years and while times are hard, those that innovate to stay ahead of the game will continue to be successful in Britain and overseas.

To continue this success, maybe British consumers need to take a leaf out of the French and German books and consciously buy more product made in our own country. Chakroborrty points out that ‘The Germans and French have kept their big domestic brand names – the Mercedes and Mieles, the Renaults and Peugeots – and with them their supply chains of smaller suppliers and partners’.

Many of us of a certain generation remember a number of ‘Buy British’ campaigns and John Lewis has recently announced that it will be launching its own range of ‘Made in Britain’ products very soon. Although the BBC article Buy British: Why isn’t there a new campaign? (www.bbc.co.uk/news/uk-wales-15287225) states that ‘The Department for Business, Innovation and Skills says the UK relies on open markets and a ‘Buy British’ campaign would be counter-productive’. In the article, political pundit Kevin Maguire says it would be a bit like shooting yourself in the foot. “UK companies need to be able to access global markets so restricting access to the UK or the EU market could all too easily encourage retaliation, which would leave everyone worse off.”

But maybe we should keep it regional rather than national. At Canard Design, we prefer to, and thankfully still have the ability to, be able to support local companies whether it is injection moulders with in the East Midlands, casting suppliers in Leicestershire or, more locally still, engineering firms or marketing companies within the Harborough district.

We find keeping these local ‘partnerships’ and networks allow referrals and the potential of work to flow both ways. This is much more likely to happen with companies within the area than if we were to go further afield for our suppliers’ services. This way of doing business not only assists and sustains the local economy but reduces transport costs, environmental impact and is self-perpetuating in that it creates its own a virtuous business circle.

According to the Guardian comment, ‘To me, it still sounds too extreme but I saw their (Wallsend workers) point: the loss of manufacturing means Britain no longer pays its way in the world. Last year, we British bought £97bn more in goods from other countries than we sold to them – the biggest shortfall since 1980’.

So in order to reduce the nation’s largest trade deficit in 30 years, retain (and grow) our (sixth largest in the world) industrial manufacturing base and employment, maybe we should buy more goods from the local community, whether it’s industrial product or vegetables from the local farm shop, it’s effect on the national economy will surely be positive.

 

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