Partner Article

Why Companies and their Managers Collaborate through NEPIC?

“It’s all about Value and Growth” says Dr Stan Higgins CEO

Clusters give companies greater access to economic value. Companies active in clusters can achieve higher levels of productivity because they are closer to specialised suppliers and service providers and can learn best practice, even from close competitors. Companies in clusters can be more innovative because ideas can be converted more efficiently into prototype products and services; they can share information on skills within the cluster and help get new products to market quickly. The quicker products get to market, the higher the likely profitability. Companies in start-up phase can always get the professional help they need to launch their operations.

The trend for outsourcing has further propelled the importance of clustering and a company’s location has moved from being important to a top priority to ensure operational efficiency. Business leaders recognise that they must determine where their activity can be carried out at the lowest costs and this is inevitably where the supply chain is most efficient. This also means that company executives in a region have a number of opportunities through clustering that enhances their ability to win new investments for their sites and businesses.

The local leaders can use the cluster to leverage the local supply chain and infrastructure minimising any weaknesses that individually a company may have locally. They can demonstrate how crucial issues like skills availability, engineering capability, utility performance and logistical capability are being addressed collaboratively. They can prove how their location can bring higher value to a company by helping to shape education programmes, sharing best practice in productivity, being involved in innovation activities, getting involved in attracting other industries which will further improve and make the local infrastructure more efficient.

Dr Christian Ketals of Harvard Business School recently stated “There is growing evidence that committing time and energy in support of the Cluster can be equally or more effective in improving the economic performance of a business than investment into internal capabilities”.

Not surprisingly the importance of clustering is growing across Europe and the membership of NEPIC continues to grow and its supply chain membership deepens. 133 of NEPICs members have credited the cluster in generating more than £1 billion of GVA to the North East region helping them create or retain 3720 jobs over the last 6 years. The cluster has also helped establish 25 new companies in the region and created the National Skills Academy for the process Industry now based in Darlington.

NEPIC promotes the region and the process industry around the world. In countries like Brazil and India, which have major emerging economies Supported by NEPIC the North East Region is recognised as the premier UK location for the Chemical Industry.

Since the first trade mission came from Brazil there are several Indian Chemical & Pharmaceutical Companies now based in the region like Piramal and Shasun.

Over the last 2 years the wider North-East England region has won >US$50m in new business from Suape in Brazil in petrochemicals & process engineering alone. Trade missions from Brazil and India are to visit the region again during 2011 due to NEPIC’s overseas promotion of the Industry.

This was posted in Bdaily's Members' News section by Louise Gwynne-Jones .