Member Article

Industry cluster calls for global representation

Growth in single digits and poor exports for process industries such as chemicals and pharmaceuticals require urgent action by regional firms and government, according to a local industry chief.

North East of England Process Industry Cluster (NEPIC) CEO Stan Higgins told his industry forum that the sector’s future economic prospects are under serious threat without a coordinated effort.

“Nobody is representing the north east of England out in the wide world and trying to bring new investment here,” he said. “There is only us and we are trying to do it on a pittance. We need your help.”

Despite recent recovery in the economic health of the process industries there is stagnation in the UK and European markets and British firms must look to growth economies in India and China, said Mr Higgins.

“If you try to grow a business in this industry, which is a globalised industry, then you must be thinking about growth areas like China and the other BRIC countries,” he said.

As an example, UK and European chemical output has steadily increased over the past 20 years, but as a proportion of global output the EU’s total contribution slipped from 36 per cent in 1991 to 20 per cent in 2011, said Mr Higgins.

“We have to look jealously at the BRIC countries,” he said. “We try to get as many of you to come out on trade missions with us and this is the reason why – you are more likely to gain sales going forward. These are the growth economies.

“My colleagues’ jaws hit the floor when they saw the nature of the investment and activity in India. They continuously ask us to bring out people with expertise. They want to trade, it is a two-way thing. We have channels, particularly in China, India and Brazil to help you do that.”

Promoting local expertise on the global stage also requires better representation at government level, said Mr Higgins, and he outlined NEPIC’s strategy to form a “chemical council” to mirror the aerospace and car industries’ relationship with the Department for Business Skills and Innovation (BIS).

“If you want to know why those industries have such a big profile it is because they are embedded into the BIS infrastructure,” he said. “Chemicals and pharmaceuticals are not, but we aim to bring that about.

“Since 2005 when we first developed a growth strategy for the industry the number of companies, the number of investments listed on the portfolio for this region was zero,” he continued. “Today, we know that since then there have been 65 big investments in this region, totalling £4bn.

“I think over the next 10 years or so we will see another £5bn rejuvenating and rebuilding the industry in the north east of England.”

Membership of organisations like NEPIC helps expand reflects the region’s capability and the strength of industrial clusters, concluded Mr Higgins.

“NEPIC recently became the UK’s first accredited cluster,” he said. “Look at the fact that there are 155 accredited clusters in Germany. It does make me worry that more business sectors are not coming together as we are to promote local businesses and industry.”

This was posted in Bdaily's Members' News section by Robin Fearon .