Outdated Myths About Manufacturing Could Make Britain Lose the Future to Asian Giants

LONDON, June 21, 2010 - Britain needs to develop a better understanding of the benefits of
manufacturing if it is to be in a position to compete with Asian economies as
the world comes out of recession. These are the findings of a study - Ten
Myths about Manufacturing, the Future of Manufacturing - from the Advanced
Institute of Management Research (AIM Research).

"Forget the Dickensian image of workhouses and cotton mills or the 1970s
picture of striking car plant workers," says Andy Neely, deputy director of
AIM Research who led the project. "Today, manufacturers are not just
producers they are also inventors, innovators, supply chain managers and
service providers."

This is one of the misconceptions documented by the study, which grew out
of a forum convened by AIM and the Confederation of British Industry (CBI).
The responses of senior representatives attending the forum illustrate the
extent of misunderstanding about UK manufacturing:

    The ten myths:

    - Manufacturing is a homogenous sector
    - The UK can flourish without manufacturing
    - Manufacturing equals production
    - Value only lies in products
    - High-value manufacturing can only be pursued in developed economies
      such the UK
    - R&D must remain in the UK to capture value
    - Manufacturing capabilities can be developed quickly
    - Manufacturing is low-skilled
    - We know the skills needed for the future
    - Government is needed mainly to procure wisely and bail out failing
      companies.

"It is essential for the future of the UK economy that these myths are
dispelled," says Professor Neely. In line with this and AIM's objective to
impact on management practice the report outlines the reality behind these
myths.

Manufacturing encompasses increasingly global, inter-connected,
multi-partner and multi-business elements. In order to compete with places
such as China, UK firms must set their R&D strategy in a global context, and
adapt their business models, product offerings, processes and service systems
to deliver higher value manufacturing.

Rather than believing that the UK can survive as a service economy alone,
manufacturing and services need to become more integrated, developing
technologies and new business models to address the provision of services
related to their products.

Rather than focusing solely on short-term performance goals,
manufacturers should invest in assets, metrics, operations and practices that
have the potential to generate growth when the economy recovers.

Modern manufacturing involves the application of scientific principles,
new technologies and the latest management thinking, requiring a
highly-educated, mobile workforce, which industry, Government and educational
institutions need to work together to provide, along with training to keep up
with changing skills needs.

"To prepare for the economic upturn, the government must develop policies
to enhance the performance and competitiveness of manufacturing, and
proactively monitor the economic conditions for manufacturing in the UK"
concludes Professor Neely.

The report can be downloaded from
www.aimresearch.org/Publications/executive-briefing/future-of-manufacturing/

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

www.aimresearch.org

For further information contact: Colin Hallmark, 3:nine Communications (Tel: +44(0)207-736-1888;
+44(0)7745-914170; email: colin<at>3nine.co.uk)