After all the recent election excitement, we
now have a coalition government for the first time since the Second
World War. Putting any political preferences to one side, I have long
believed that cooperation and partnership between people and
organisations is the best way to conduct business, as well as trying to
run the country.
A good example of
this is the model of the trade association. Our company belongs to five
of these organisations, and over the years it has done our business and
me personally, a power of good.
In
the surface finishing industry we are members of the SEA, IMF, BSTSA and
SAMFA (South African Metal Finishing Association). In our role as
machinery merchants, we are also members of the EAMTM (European
Association of Machine Tool Merchants).
One
of the great disciplines of belonging to these associations is the
requirement on you and your company to adhere to a strict code of
business ethics, and not do anything to undermine the business of
another member company. Whilst some may think that this flies in the
face of true capitalism, it has its place in both old fashioned values
and modern business practices.
It
is self-regulatory, as few want to rock the boat and become blacklisted.
And as well as enhancing corporate responsibility, this check on a
company’s behaviour enables it to build a strong, trusted brand name and
reputation among its peers.
Another
benefit is the shared responsibility for the health and well-being of
an industry and its members. In essence, the creed that we are stronger
together than we are when apart. Helping each other, sharing knowledge
and lending expertise in lots of small ways all adds up to sustaining an
industry that functions more profitably and more efficiently. This
helps both large and small companies to survive the worst of
recessionary pressures, take advantage of opportunities and adapt to
changes in the marketplace.
In
addition, the associations enable us collectively to pool our resources
towards areas such as research and development (especially important in a
technically complex industry such as ours), market research, export
strategy, publishing and exhibitions. They can also provide lobbying
power for subjects such as environmental legislation. These kinds of
activities would be beyond the capability of many smaller companies
Over
the past two years, I was privileged to serve as chairman of the EAMTM
UK division. If you think we have had it bad in the surface finishing
industry, boy you should take a look at the machine tool business! But
despite the downturn, the spirit of cooperation has never been better,
something for which Riley Surface World can be profoundly grateful.
Of
course, an organisation that operates on a Europe-wide level is not
without its difficulties. Just think of the European Union in microcosm.
And yet, because we are in a globalised economy, the merging of
national associations is inevitable. This brings economies of scale and
creates far greater opportunities for business development and is
something that perhaps our existing trade associations should consider.
So
as we optimistically look forward to the next five years of political
stability and economic recovery, let’s continue to operate in a way that
is cooperative and inclusive towards the rest of the companies in our
industry. We are all in this together now.
