What is Soloman? From a database of 15,000 London companies Delivered many Government initiatives

Transcription

1 Presentation to the Economy Committee of London s Assembly on How to Promote Manufacturing in London delivered by Soloman (The Society of London Manufacturers) on 9th July 2012 by Ian Andrews & Annette Nicholson Appendix 6

2 Overview What is Soloman? Nature of London s Manufacturing Major factors affecting manufacturing in London Factors that the London Assembly can influence Local Legislation Local Environment Skills young people Skills older experienced workers

3 What is Soloman? Trade Association for Manufacturers throughout London Established in 1995 on initiative by Tim Eggar Assists companies with their limits to growth Talk to companies every day From a database of 15,000 London companies Delivered many Government initiatives

4 The nature of manufacturing in London Typical size 50 to 70 employees Lean and keen to survive in London cost base Some takeovers still resulting in companies moving elsewhere in UK Work coming back from the Far East Many vacancies for Skilled people CNC Programmers, Tool makers, Manual Millers and Turners, Mechanical Assembly We are filling these vacancies with ages 50 plus sometimes up to 68 We need young blood in the industry The older experienced staff should be training the younger ones Manufacturers expect the skills to always be there Dependence upon mutual supply chain

5 Types of Companies in London Unlike other cities, alltypes of manufacturing and processing are available in London, including: Precision Engineering; Electronics; Pharmaceuticals; Aerospace; Plastics; Instrumentation; Food and drink The strength of London s manufacturing depends, in large part, upon the resultant supply chain of expert services

6 Survey Response -Major factors affecting the growth of Manufacturers in London Finance -Access to Funds and Exchange Rate Market conditions worldwide Supply chain Legislation Environment Skills

7 Factors that London Assembly can Influence Local Legislation Local Environment Skills

8 1. Local Legislation The important skilled supply chain SMEs are burdened by parking and central zone costs and are less efficient by trying to work around it. Possible Solution: An annual license for companies that need to work in London

9 2. Local Physical Environment Companies on many industrial estates operate in an environment where: There is little dialogue with Local Authorities There is no co-operation with the Police, and No sense of community

10 Problems Created by Physical Manufacturing Environment Crime professional, dumping, vandalism etc Congestion due to lack of parking control Lack of route and local signage Inappropriate neighbours Lack of suitable public transport for staff Overall poor appearance

11 Resulting in: Costs to business and lack of efficiency A poor business environment, and Lowering Occupancy rates and Capital Values

12 Possible Solution Roll out of Business Improvement District Scheme Stage 1. Assist and encourage companies to form local committees to liaise with their Local Authorities and Police Stage 2. Provide seed funding (loans?) for suitable estates to establish BIDs (Business Improvement Districts)

13 Benefits of establishing Estate Committees and BIDs An approach has been piloted in South London, under an LDA initiative, that has had exceptionally good results: Crime reduced Appearance improved Occupancy high and capital values increased A dynamic business environment On all estates good working relationships with the LAs and police have been established On 3 BID estates this has resulted in over 1m of investment

14 3A. Skills Young People Image every youngster wants to be a celebrity No youngster seems to understand what manufacturing is Our skilled staff are getting older and less young people being recruited

15 There is a start of a solution Government focus on Apprentices is helping SEMTA new PMO Apprenticeship Offers pathway for shop floor entrants However, these initiatives are still 1 on 1 and need a faster roll out

16 Image still needs help School Visits Programme Factory Visits teachers as well as students! Young actors to spread the word?

17 3B Up-Skilling Older Unemployed ex Manufacturing Staff Background Good news Work coming back from Far East as cost base rebalances Companies crying out for CNC programmers These unemployed CNC programmers used to do it but lost their jobs as manufacturing drifted overseas They became bus drivers or cabbies etc Companies won t employ them -despite their need -as they need their skills honing

18 Possible Solution Run a pilot CNC Up -skilling project for Unemployed CNC staff using Industry recommended CNC trainer and University that has CNC machines Additional Funding needed as Skills for Redundancy budget is insufficient

19 Conclusion The London Assembly can promote London`s manufacturers by concentrating on assistance with Parking and Zone cost Legislation Local Environment Skills