We all have responsibility to produce growth

Following the Queen’s Speech outlining the government’s legislative programme for the new parliament, there has been a great deal of criticism from opposition parties, media commentators and general chatter from the users of Twitter and then like about the need ‘to create more growth.’

While few people would argue that more growth is desirable in these difficult times, what does ‘growth’ really mean and how do you ‘create’ it anyway?

The traditional Keynesian measures consisting of the government stimulating growth by pouring money into large public sector infrastructure projects seem to be out of the question at present. The Olympics has given a massive boost to East London and the feel-good factor should be with us all summer, but this is the exception. In any case, the finance was put in place during the good times, before the banking crisis caused the world economy to fall off a cliff.

In the UK, our economy is operating against a backdrop of public sector cuts, high street closures, tentative bank lending, rising energy prices, rising unemployment and falling living standards. Not exactly the ideal environment for growth creation.

On top of all that, the falling value of the euro may be good news for those of us that are going on holiday to Europe in the next few months, but not such good news for companies that depend on exports to the European market. Meanwhile, the crisis in the Eurozone goes from bad to worse. In this perfect storm, where is the growth?

Well, for starters, maybe growth is the wrong word to be using. Growth implies that the consumer suddenly becomes more confident about future prospects, job security, rising property values, personal credit-worthiness and a whole host of other factors that result in an increase of consumer spending.

The other main implication is that the spending must somehow be fuelled by borrowing, and that it will be on goods, services and properties that are currently in negative growth. In other words, the direct opposite of the current downturn. But isn’t this the thing that got us into trouble in the first place?

If you substitute the word growth with success, you arrive at an entirely different agenda. Success involves successful companies producing new products and services that people want to buy, and will find a way of doing so despite the economic climate.

You are probably thinking, ‘what has all this pontificating got to do with our industry?’ Well I will try to explain. A good example, as outlined in my previous blog, is the growth of paint and powder processes, which are currently out-performing electroplating and demonstrating growth that is lacking in much of industry at the moment.

New technology, whether it be in motor vehicles, aerospace, defence, computing or construction materials, is demanding even more interesting, durable and sustainable kinds of product finishing. Where traditional electroplating processes have been found wanting, new organic coating processes are supplying the need.

This, in turn, is resulting in successful products from successful companies, which are finding new markets in developing countries such as the Middle East and South

East Asia, where recession is not an issue. So we create exports, which create jobs, which create confidence, which creates growth.

There is no easy way out of this scenario. The greatest hope, both for our industry and for the country as a whole, is that we constantly find new solutions to new problems and continue to work hard at what we do best. This may not make growth certain, but certainly more likely.