Manufacturing: the fightback

by Matthew Rock - Friday, 16th May 2008 - (1) comment - Business comment

Following James Caan's blast against manufacturing, the BBC's In Business programme devoted half an hour or riveting radio to "maverick manufacturing companies" and how they are thriving against the odds.

A couple of weeks ago, at our Entrepreneurs' Summit, the Dragons' Den investor James Caan let slip that, in his view, the UK had no future as a manufacturing centre.

Cue uproar. Fellow Dragon Doug Richard, ARM-co-founder Sir Robin Saxby, King of Shaves creator Will King, Aqualisa boss Harry Rawlinson, and Scottish engineering legend Jim McColl all ploughed in to dismiss Caan's views. Click here to read their reactions and here to read Flowcrete founder Dawn Gibbins on the same subject - women will be the saviour of manufacturing.

Interesting, then, to hear Radio 4's peerless In Business programme dedicating a fascinating half hour to a group of "maverick" manufacturers (including Gibbins and McColl) who maintain that UK manufacturing does have a real future if it thinks smart.

I heartily recommend a listen. Click here for the podcast.

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1 Comments

May 23, 2008 12:12pm
Terry Prudhoe Says:

Dear Sir,

! was interested to read the comments by James Caan because he is partly right but also very wrong when it comes to pharmaceutical manufacturing.

He is right that the Indians and Chinese can copy anything manufactured in this country and do it cheaper. This extends to the pharmaceuticals products that my company manufactures and yet we are not only staying in business but even thriving as an increasing number of customers here in the UK realise that there is more to it than price alone. They know that they can buy the same products that I produce from an Indian manufacturer and probably even get them cheaper, but still prefer to deal with us.

What I think that James Caan has overlooked is that customers often value relationships more than figures on a spreadsheet. We have worked with these companies for many years and they know that if they are in an awkward situation, they just need to pick up the phone to us and we will make an effort to help them out. They do not feel the same way about a supplier located 4,500 miles away who cannot just put some extra stock on a lorry and have it at the customer's warehouse a couple of hours later, even if they wanted to.

Just as importantly is the quality issue. This is not just a vague concept when it comes to pharmaceuticals - people's health is at stake here. Even though the foreign companies that make medicines are inspected by the same regulators that inspect us, there are still question marks in the minds of the customers as to how closely the foreign manufacturers adhere to GMP (Good Manufacturing Practice) rules when the inspectors are back home in Britain.

It is true that some manufacturing has indeed moved to India and China who supply most of our raw materials, but we are a testament to the fact that British companies can compete with the Chinese and Indians and win when it comes to products higher up the value chain..

Kind Regards Terry Prudhoe
Aspar Pharmaceuticals Ltd. Tel:020 8205 9846 Fax:020 8205 9854 Mobile:07703 172761 e-mail: terry.pru@aspar.co.uk