IN THIS ISSUE - Weekly Focus – EEF launches Flexible Workplaces Campaign and Modern Manufacturing Survey - Labour Party Policy Forum - Associate Parliamentary Manufacturing Group - EEF Submits Evidence in Security of Energy Supply Inquiry - All Go Again for ‘New CCA’ - In the News - Week in Review - The week ahead
WEEKLY FOCUS
EEF launches Flexible Workplaces Campaign and Modern Manufacturing Survey
Our campaigns to improve the business environment in which manufacturers operate are focusing on three distinct areas this year. Our growth campaign in the first three months of this year focused on the government’s economic agenda and resulted in a number of successes in the Budget, in particular the extension of the short life assets regime from four to eight years which was a direct result of our lobbying. Later this year, in the run up to the next summit on climate change, we will be focusing on climate and the environment.
Today we are launching the second of our major campaigns of activity this year on flexible workplaces. The attached microsite will be populated with a wide range of information in the coming months to help manufacturing companies deal with all aspects of operating a modern manufacturing facility, allow companies to participate in our responses to government consultations on regulation and help guide our representation by responding to a number of polls on key topics.
To launch this campaign on Monday we will be commencing a new and important member survey - The Modern Manufacturing Workplace. This survey will gather data on how the job of management in manufacturing has changed, the flexibility that companies need from their workforces and how they achieve it.
We will use the results to highlight areas where the government should consider changes to current employment regulation to promote greater labour market flexibility. This is your chance to tell us the flexibilities that are important to your company and influence government thinking.
The survey will have been e-mailed to a named contact in all member companies, but if you are interested in participating and have not received it, or want to check if someone else in your company has, contact Amanda Norris, anorris@eef.org.uk
For more information on EEF’s forthcoming Flexible Workplaces Campaign contact Stephen Radley, Director of Policy and External Affairs
NEWS
Labour Party Policy Forum
EEF was represented at the Labour Party’s Peoples’ Policy Forum in Nottingham, an event aimed at engaging key stakeholders, and the general public, in the party’s policy making process. Throughout the day EEF ran an exhibitor’s stand and had productive face-to-face meetings with a number of key Shadow Ministers, including Angela Eagle, Shadow Chief Secretary to Treasury, Chris Leslie, Shadow Treasury Minister, and shadow Business Ministers Ian Lucas, Nia Griffith, Gordon Marsden and Gordon Banks. Later in the day, Labour Leader Ed Miliband and Shadow Chancellor Ed Balls held separate Q&A sessions. Both made references to the importance of rebalancing and building up manufacturing in the UK. EEF will continue to build links with the opposition to promote the interests of UK manufacturing.
For more information contact Rocky Lorusso, External Affairs Adviser
Associate Parliamentary Manufacturing Group
This week EEF participated in a meeting of the Associate Parliamentary Manufacturing Group on finance for SME manufacturers. The audience was primarily MPs and Lords who questioned a panel with representatives from the Department for Business, Innovation, and Skills, Lombard asset finance, and the Technology Strategy Board. Issues raised included the ‘second valley of death’ for second-round innovation funding, a lack of awareness of the different types of finance available, and the competitiveness of the UK tax system in encouraging investment.
For more information contact Andrew Johnson, Senior Economist
EEF Submits Evidence in Security of Energy Supply Inquiry
The influential House of Commons Energy and Climate Change Committee is exploring the nature and extent of the UK’s energy security. Key areas of the inquiry include how resilient the UK is to future changes in fossil fuel prices and the interaction between energy security and the pursuit of climate change objectives.
EEF’s submission focused on the importance of nuclear power to future energy security, the need to address the risks arising from rapidly increasing dependence on natural gas, and the need to pursue a balanced approached to decarbonising our economy or risk compromising energy security.
For more information contact Roger Salomone, Energy Adviser
All Go Again for ‘New CCA’
Following the good news in the Budget that Climate Change Agreements (CCA) will continue to 2023, EEF met with DECC this week to offer our help in determining the structure, scope and flexibility mechanism of the new CCA that will operate from 2013. DECC recognises that EEF, through its Chairmanship of the Manufacturers’ Climate Change Group (MCCG) is an ideal critical friend to ensure that the rules of CCA continue to be as business friendly as possible.
For further information, contact Gareth Stace, Head of Climate & Environment Policy
EEF IN THE NEWS
Coverage this week followed on from last week’s Budget where our responses were quoted in the Financial Times and Daily Telegraph . EEF’s Chief Executive, Terry Scuoler, also took part in a studio debate for FT.com together with the FT’s Business Editor, Brian Groom. Terry Scuoler also took part in a live debate on Radio 4 on the topic of the Budget and the importance of manufacturing in delivering economic growth and high value jobs and skills. Later in the week we published our latest pay survey showing that economic uncertainty was still outweighing any demands for significant increases in wage settlements, as reported by the Financial Times , Press Association and The Manufacturer .
WEEK IN REVIEW
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 GDP, 2010q4, final revision
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National Statistics revised their estimates for GDP in the fourth quarter of 2010, with data once again showing a 0.5% contraction. Output grew by 1.1% in manufacturing, but services and construction output fell. |
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 Balance of Payments
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The current account deficit in 2010q4 was £10.5bn, equivalent to -2.9% of GDP. This compares with a deficit of £8.7bon (-2.4% of GDP) in the 2010q3. The worsening in the Balance of Payments was due to higher deficits on current transfers and on trade in goods, combined with a lower surplus for trade in services. |
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 Business Investment
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National Statistics’ revised Business investment estimate for 2010q4 terms showed no growth when compared with the previous quarter. The provisional estimate had shown a fall of 2.5%. Manufacturing investment increased 4.1% over the quarter. |
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 Lending to individuals
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Total net lending to individuals rose £2.0 billion in February. Within the total, lending secured on dwellings rose £1.2 billion while consumer credit rose by £0.8 billion. |
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 GfK/NOP Consumer Confidence
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GfK NOP’s Consumer Confidence Index remains at -28. There were small increases on the indicators relating to the general economic situation but households felt that their personal financial situations over the last 12 months, and the climate for major purchases, had worsened. |
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 Manufacturing PMI
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The manufacturing PMI fell back a little to 57.1, following last month’s record high of 61.5. This is still well above the series average of 51.3. Continued input price pressures meant that output prices rose at a record rate. |
THE WEEK AHEAD
Wed 6th: Index of Production
Thu 7th: MPC rate decision
Fri 8th: Producer price index
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