Wednesday 14 January 2009

The green shoots of recovery

I am writing this column at the very start of 2009. Companies are going into administration or announcing large job cuts on a daily basis. For the first time for some years there is bad news from manufacturing as I hear about the problems at Wedgwood, Jaguar and Nissan.

There is no doubt that this is going to be a very tough year. So why, paradoxically, do I feel an air of confidence about the prospects for our industry? Let me give you some optimistic predictions to try and lighten the gloom.

First and foremost is the old spirit of British innovation. The recent anniversaries celebrating the lives of great figures such as Charles Darwin and Isambard Kingdom Brunel are good examples of how Britons have always been at the forefront of science and technology.

You only have to look at more recent examples such as Tim Berners Lee, the founder of the internet, and the great inventor James Dyson to know that UK pioneering innovators are alive and well.

In recent years the UK has mainly withdrawn from volume manufacturing (the largely foreign-owned automotive industry being a notable exception). I do not need to go into the reasons why. Instead we have concentrated on design engineering and specialist niche product development.

Surface Finishing has always been a key area in such activities. From micro-chips to pre-fabricated buildings, all require new and original methods of plating, coating, anodising and other specialist surface treatment processes.

British surface technology expertise, supported admirably by Great British institutions such as the SEA and IMF, has never been in greater demand. Our universities are world leaders in the development of new, eco-friendly coating and finishing processes.

This expertise is sowing the seeds of a remarkable and fast-growing crop of new, specialist product finishing companies. Many are independent whilst some are in-house divisions of larger manufacturers. It is those that are at the cutting edge of the latest technologies that will enjoy most success.

At Riley Surface World we are dealing daily with enquiries from companies applying specialist coatings to plastics, aluminium and other lightweight materials. Anodising still continues to be a very popular process due to its versatility and depth of applications. And the UK is still very much at the forefront of this kind of activity.

I believe that the true potential of this unrivalled resource will really begin to blossom during this recession. One of the few reasons to celebrate the current downturn is that the UK is finally becoming competitive again. The fall in sterling and other price reductions are not just for the benefit of those rich foreigners who arrive in their droves to shop at Selfridges and Harrods. Multi-nationals are increasingly looking to the UK for all or part of their surface finishing resources.

In the surface finishing industry, we are beginning to see, in the infamous words of former chancellor Norman Lamont, ‘The green shoots of recovery’. Nearly every day we talk to young entrepreneurs with requirements for finishing equipment. The market for conventional wet-finishing plants has almost disappeared. In its place there is greater diversity, innovation and specialisation. Much of this is driven by environmental legislation and the needs of the internet generation.

So good luck to everybody as we enter the most challenging market that we have seen for over twenty years. Remember the words of another politician of the recent past: ‘There is no reverse gear.’