Manufacturing firms encouraged to embrace renewables despite recession

• May. 17 by Lucas Coe (0)

Manufacturing companies from Birmingham and the West Midlands will be able to get an insight into the renewable energy industry at the end of the month, despite many companies battling the recession.

The event is organised the Corporate Finance Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW) and will be held at Cobbett’s offices in Colmore Square, Birmingham, on Thursday 28 May.

It will explain how the renewable energy industry is developing and how best to invest in the growing technology.

Racheal Evans of the ICAEW, told The Birmingham Post:

‘The West Midlands’ large and highly competent manufacturing base can take full advantage of new opportunities in clean tech and renewable technology.’

However, The Birmingham Post failed to question Evans on the difficult financial climate manufacturing companies have been working in, causing many reputable companies with strong green policies to struggle, such as LDV Vans.

The Birmingham based company was due to enter administration, despite being one of the leading environmentally friendly van makers in the industry, before Malaysian company, Weststar, agreed to buy the company.

However, this has not guaranteed the 850 jobs in Birmingham, with LDV marketing director Guy Jones saying many will lose their jobs.

The Engineers Employment Federation (EEF) has predicted the toughest trading climate in two decades for manufacturing companies, causing the potential loss of 140,000 jobs this year, which raises doubts over investing in expensive green technology.

Bob Dale, Head of Grant Thornton’s Manufacturing Group, told the EEF:

‘The quarterly survey indicates that the positive progress made by the sector over the last few years has been destroyed almost overnight by the catastrophic effect of the recent turmoil in the financial markets.’

But financial and business experts believe investing in new technology is the only way to spark a struggling industry.

Business Development Director at Catalyst Corporate Finance LLP, Clive Bawden, told The Birmingham Post:

‘The renewables sector holds massive opportunities for businesses and entrepreneurs in the region, as we are already seeing with our own clients.’

This is in coherence with a Learning and Skills Council report published in 2007, which stated there is need for investment in new technologies for manufacturing to prosper:

‘It is forecasted that over the next ten years the (manufacturing) sector will not only shed a significant number of its current workforce, but will need to address a wider range of skill needs.’

For more information contact Richard Steele on 020 7920 8557.