Manufacturing Sector Needs More Support Says Kelly

The chief executive of Manufacturing NI, Stephen Kelly, says that, although the manufacturing sector makes up 40% of the Ulster Business Top 100, it is still in a position where it needs all the support it can get from the current Executive in Stormont.

There are approximately 250,000 people in Northern Ireland who work in and around the manufacturing industry, but Mr Kelly says that ever higher costs, and with further decarbonisation also to contend with, leaves it in a precarious position.

We’re Good At Making And Selling Things

Here are some points that Mr Kelly talked about on this subject, which are copied from an article in the Belfast Telegraph. He said that:

“We’re good at making things and selling them externally. It’s why, when taking in the widest definition of manufacturing, half the top 20 and more than 40% of the Ulster Business Top 100 are our makers.

“Our sector represents around 14% of local GDP (40% higher than the UK) and directly 11% of total employment. With around 70% of manufacturing taking place outside of Belfast, it’s impact on local economies is more pronounced with, for instance, half of jobs in Mid Ulster and four in 10 jobs in Mid and East Antrim and Armagh, Banbridge and Craigavon Council areas depend on the sector.

“The regional economy, particularly outside of Belfast, is a manufacturing economy.

“The largest employers in our smaller cities, larger towns and most council areas are our manufacturers.”

He later went on to say in the article:

“Engineering is in our DNA and strongly represented. Not just machinery manufacturers but life sciences firms and increasingly construction materials. We are a population of 1.9 million people but we feed 10 million across these islands which is why our food producers such as Foyle Foods, Moy Park and Tayto. The success is shared with a far-reaching supply chain and in the case of our co-operatives, Dale Farm, Lacpatrick and Fane Valley, directly with the agricultural community.

“The aims of our new (ish) Executive for good jobs which are regionally balanced are already being delivered by the sector. If we are to secure the ambitions to also be more productive and decarbonised, then the right environment needs to be secured.

“Northern Ireland has one of the largest shares of manufacturing enterprises in its business base across the UK regions. While it accounts for just 6% of the total private sector business population, it contributes 21% of turnover and accounted for almost 100,000 jobs. It is the second largest private sector employer and second largest in terms of its share of turnover.

“One in five of Northern Ireland’s largest enterprises (250+ employees) are manufacturers with the manufacturers in the Top 100 list directly employing some 55,000 people.”

And finally he went on to mention the associated costs in the sector:

We Suffer Some Of The Highest Energy Prices In Europe

“We endure additional costs being at the beginning and end of every supply chain and suffer some of the highest energy prices in Europe (it is no surprise that logistics and energy firms are also very prominent in the Top 100).

“The Executive have set a decarbonisation target. The cost for manufacturers will be huge. It is why governments elsewhere are stepping in to support this journey, including the Irish Government (our competitors) who have set aside some €300m alone to grant fund decarbonisation in their manufacturing community.

“Here, nothing is being done to curb the excesses of energy firms and we risk adding new costs and removing the ability of our firms to secure the capital it needs to begin and end their decarbonisation journey. For instance, it is our view that any proposal to meddle with rating policy relating to industrial space would be completely counter to the ambition of the Executive.

“The world’s strongest, more enduring economies are those that continue to make things with their hands. If we are to succeed in a more productive, decarbonised global market, we need our Executive to lean in and support.”

We believe that businesses in all sectors need the strongest support from the Executive to ensure they become more and more successful, create jobs, wealth and grow the economy.