27/02/2014 Midlands Today

Hello and welcome to Midlands Today, coming live from Telford, in

Shropshire. Tonight, we'll be looking at just

how much we still make here in the Midlands.

Manufacturing is on the up once again, but by how much? I think the

West Midlands economy, given the surge in manufacturing and exports,

would be in the region of 5`6%. In this hall, we have brought together

101 things, all made in the Midlands, from tanks to teddy bears

and plenty in between. The West Midlands is the export Centre for

the UK. Half of the British exports. We look back at some of the things

we used to make which we can be rightly proud of.

And we look forward to where jobs in the future might come from.

So all types of things for all types of conditions, and that is perhaps

appropriate with the weather that is heading our way.

Good evening from the International Centre in Telford. We've got a very

different programme for you, as we examine the health of manufacturing

in the Midlands ` once known as the workshop of the world.

We suffered more than anywhere else when manufacturing became

unfashionable. Tens of thousands of jobs disappeared in this region. But

now it's seen as essential once again that we design, make and sell

more. And there's evidence that's

happening. Nationally, growth this year is expected to hit 2% or so and

that's a welcome change. But latest predictions for the West Midlands

suggest that growth here could be double that, perhaps even 5%. And it

will be manufacturing led. In a moment, I'll be talking to

entrepeneur and former Trade Minister Lord Digby Jones, who's

spent a lifetime in industry in the region.

But first, our business correspondent Peter Plisner on how

it all began just a few miles from here at the birthplace of the

industrial revolution. The famous Ironbridge, known the

world over. Now a popular tourist attraction in an area dubbed "the

birthplace of the Industrial Revolution". That is because it was

here that Abraham Darby perfected a cheaper way of making I am. It was

an innovation that quickly spread. Initially to places like the nearby

Black Country, which became one of the most heavily industrialised

areas of the UK. It was the engine room of the entire economy. It drove

British expansion and it drove, really, the British Empire. But like

many areas that saw rapid growth, the Black Country also suffered

economic decline. The closure of the Round Oak Steel Works was a major

blow. It's now the site of the Merry Hill Shopping Centre. The decline

continued, with metal`bashing moving abroad where Labour was cheaper. But

nothing was safe. There was uproar when production of the famous HP

sauce was moved from Birmingham to Holland and the factory was

demolished. Manufacturing companies, when they have looked to offshore

within Europe, they have gone to central and Asian Europe, in the

Slovakia and eastern Europe, they are a fraction of what they are

here. Globally, they have looked further afield and in many cases,

gone to China to Salisbury cheap components where Labour costs are

much lower. But there's evidence that some manufacturing is returning

to the Midlands. Management at this Birmingham engineering firm has

moved an entire factory back from Hungary. We didn't expect to do it.

Arguably, it was quite frustrating, having gone out there with the best

of intentions, but you have to keep reinventing your strategy and moving

on. But reshoring, as it's called, isn't the only reason there's

growth. Success at companies like Jaguar Land Rover and JCB has also

helped to boost the fortunes of the region's components suppliers. And

this is one of them. At this car `based `` car seat maker in Tipton,

recession hit hard but now they are seeing orders up to an increase of

30%. When I first started, it was quite small and now it is absolutely

stretched. The progress has been quite something, it is all good. I

have worked here for six years and they keep on employing and employing

unemployed. It all means that the West Midlands now accounts for

around 7% of UK output and the region also has the countries

fastest growth in exports. `` country's. Nationally, we are

expecting growth of two `3% and I think the West Midlands economy,

given the surge in growth and exports, will be in the region of

5`6%. The Business Secretary Vince Cable

says the strong performance here is helping the recovery. Half of

British exports, certainly of goods, originate in the West Midlands and

it is now growing rapidly and it is based on the emerging markets. And

if this recovery that we are experiencing is going to be kept

going, and it must be that the sake of the country, it has got to be

export `based. It is going to be increasingly manufacturing base and

the West Midlands, more than any other part of the country, is going

to deliver that. Innovation is often key to survival

and some firms have simply been left behind. At the Cash's factory in

Coventry, there's a long history of labels for clothes. But recently the

company went bust. Its administrator says after a recession, some firms

still struggle. What tends to happen is that as you are coming out of a

recession, businesses start to grow, which is obviously a good

thing. But growth as a result of more orders, again a good thing, but

that growth requires funding and funding can be very difficult to get

after a recession because lenders are still nervous.

But other firms have survived the recession by making niche products.

Back near Ironbridge, this cycle maker is one of them. The skills

that we have a very specialist, it is something you cannot outsource to

the Far East. When we started framed building in the 1980s, there were

probably 200 frame builders in the UK. Now there are about 20.

In the past, the West Midlands was a powerhouse of the UK economy. Now,

with strong growth in exports once again, it's the region's

manufacturers that are leading the way ` this time out of recession.

With this now is the former director`general of the CBI, Lord

Digby Jones, former government minister and the chairman of the

company that makes this Triumph bikes. What about Vince Cable saying

that West Midlands Manufacturing is so important for the whole country?

Speaking yes and well done, you guys, for celebrating tonight,

because we need the media and the schools to push that message all the

time. It is coming from a Cabinet Minister, what could be better? You

have roadster, Longbridge, Castle Bromwich, commentary, Solihull ``

commentary. Wherever you are watching, we are leaders in the

recovery and are balancing the economy back into manufacturing. And

in the report it said that growth could be double the national

average. It is realistic and it is done on the back of exporting to

emerging markets. It is about export. About making things. And the

demise of manufacturing was because we made things that weren't good

enough for people who didn't want to buy them who were selling on price,

where someone in China is going to beat you. Now these things are all

sold on value added. Price is important but it is not what gets

you there, it is brand, it is "want to have" , quality and innovation.

That is why it is sustainable. Emerging middle class is

sustainable. Emerging middle classes in commentary, Brazil, `` in Brazil

or China, they wanted to show these things are. We have this tank here,

it is a massive innovation of skills, we couldn't show everything,

but why did things go bad for manufacturing? I think there was

complacency after the war, we felt we didn't have to trike anymore but

the rest of the world was catching up. Awful, dreadful trade union

attitudes, which is so different to today. If you look around, it is

fully unionised, just down the road in Wolverhampton, 1400 jobs at the

engine plant, all unionised but it would never have happened 30 years

ago. Awful industrial relations and poor quality. Birmingham City

Council announced grand ambitious plans around where HS2 is about to

commit. A sign of confidence question mark tremendous side. I

have always said do not listen to politicians, always look at what

they are going to do. If they sign the checked Birmingham, it is great

news for watching the programme. Get yourself a skill and believe in the

region. Lord Digby Jones, thank you. One industry that has really

struggled over recent years as the pottery business, around

Stoke`on`Trent, but one company in amongst all that has done really

well, the Portmeirion Group. They have survived and Sarah Plimbley is

here to talk about it. What has been the key? I think for Portmeirion, it

is a quality product that at price people can afford. I don't think it

is a coincidence that those companies who are doing well now are

the ones who have maintained a UK manufacturing base. How important is

customer loyalty? Essential. If you think you have someone buying

tableware, that is an investment for life. We want them to stay with us

for the whole time, enjoying their time around tables. Sarah, thank you

very much. You're watching a special edition of

Midlands Today, trying to gauge how manufacturing businesses are doing

across the region. I am joined by the bosses of three very different

companies. We are all sitting on COBRA chairs made right here in

Telford and you might have seen them in the dugouts at football grounds

around the country. Jason, if I can turn to you first, the chair of

Institute of Directors and eastern foods. Are you finding the right

people and the right skills? It is difficult to find the right people.

We have 30 apprentices we have employed and over the last two

years, we have only retain seven, so there is complexity in getting hold

of the right skilled people and getting the right words are fake.

The West Midlands is vital in the export market. What about in East

End Foods? Have you got a healthy export? We are very proud to be

producing everything in the UK. What we find is we are exporting to 30

countries, including India. The value of brand Britain around the

world is absolutely amazing and we are able to sell very easily all

around the world. You are nodding at that, you supply components for the

car industry amongst other things. You benefited hugely from the

expansion of like your agenda `` Jaguar Land Rover. Had you make sure

you don't have all of your eggs one basket? We help to supply parts for

every single model and there are further plans ahead to increase

their models, so we don't think we have. What is your growth forecast?

Since the start of the recession, millennium has doubled in size and

we will grow another third this year, and it will be ongoing. What

is it down to? The opportunity the growth in the industry has given us

but we are also seeing growth in construction and we won a new

contract in the construction sector. So there is a renaissance in

construction? I think it will grow this year more than it has done

previously. Thank you very much indeed. So it does sound as though

there are indeed reasons to be cheerful about the growth in the

West Midlands, which seems to be really pushing the economic revival

right across the country. We can be proud of the things the

Midlands has made. This double`decker Metro Cammel bus, made

in Birmingham, is a popular exhibit at The Transport Museum at Wythall.

If not a bus. What about this? The Reliant Robin. Del boy and Rodney,

made of fibreglass in Tamworth. And look at this absolute beauty.

Everyone aspire to one of these, boy racers such as myself. The E`Type

Jag, made in Coventry, and often voted the most beautiful car ever

made. This one is owned by Nigel Harper. Hello. Why is it so

special? Enzo Ferrari said that the E type Jaguar was the most beautiful

car in the world and 50 years later, it was the only car that

appeared in the design Museum in London. I think that just proves how

the design has stood the test of time. Speak like how old is this?

1966. How much is it worth? ?150,000. Nigel, thank you very

much. From the E type jack to this little

fellow. `` Jaguar. The Mini changed everything when it rolled off the

production line in Birmingham in 1959. Transverse engine, front`wheel

drive, trendy and you could get the family in at a squeeze. Five million

were made, making the Mini the best`selling British car of all

time. And as Sarah Falkland has been finding out, they turned up in all

sorts of places. The marvellous Mini. Made in

Longbridge, thrashed in the Italian Job. But it was a single

Birmingham`made Morris commercial van that gave us the film's immortal

line. You're only supposed to blow the bloody doors off. Coventry`made

black cabs, good enough for us and for royalty. But did you know that

Stephen Fry and Kate Moss have one of their own? And the flamboyant

King of Tonga used to tour his island state in one? Midlands motors

cope well in hot climates, though. Lara Croft knew that. Solihull`based

Land Rover even brought out a Tomb Raider limited`edition Defender.

It was craftmanship in Cradley Heath, though, that made the chains

and anchors for the ill`fated Titanic.

WHISTLE. It's comforting to think that

Midlands`made whistles helped in the rescue operation. Out came this

whistle. Kate Winslet, heroine, Rose, blew it. And on it, clearly,

blown up before me big on the screen, it said "Acme Thunderer,

made in England". Which was the first I knew about it. Forward 30

years and Birmingham`made Spitfires helped save thousands of lives.

Designed by RJ Mitchell from Kidsgrove, in Staffordshire, the

Spitfire achieved fame in the Battle of Britain. Over 12,000 rolled out

of the factory at Castle Bromwich. Here is where your salvage, your

saucepans and shillings and pence have, under the magic wand of

industry, become part and parcel of the finest fighting aircraft in the

world. She could fly higher and faster than anything else and was

the envy of the Germans. If only the Meriden`made Triumph motorbike could

have got Steve McQueen away from the Nazis, his escape would have been

truly great. No denying the greatness of this man. Did you know

that Winston Churchill was buried in a coffin with fittings made at the

Newman Brothers factory in Birmingham's Jewellery Quarter? So

too was Princess Diana. In her youth, she'd famously whizzed around

Kensington in a Longbridge`built Mini Metro. But royalty's links with

Midlands manufacturing went back way before then. The Queen nearly always

has a custom`made Launer handbag on her arm. These are the girls in

Walsall who make them. For decades, Her Majesty played safe with beige

and black. But then a couple of years ago, she started experimenting

with colour and sales here at Launer went through the roof.

Even in black and white, Birmingham chocolate`maker Cadbury quadrupled

sales for their Flake with a winning ad formula. Light, crumbly,

heavenly. Pretty girl, scenic backdrop and more than a hint of

suggestion. And Hurst comes in. Finally, another

starring performance from Acme Whistles. 1966 was the year.

England's disputed World Cup goal made official in a single blast. A

timepiece of Midlands manufacturing that helped make footballing

history. All made in the Midlands. Now, look

at this, this is called a violectra, an electric violin and

that is worth ?4000. It was handmade in Moseley in Birmingham. This is

what it sounds like in the hands of an Aston Villa fan and fiddler

supreme Nigel Kennedy. Manufacturing thrives on good ideas.

Like this clever design to put in your garden, made in Warwickshire.

Very stylish, guaranteed to get the neighbours talking and, as you can

see, you can turn it to catch the sun. A brilliant idea, but where are

the next great ideas coming from that will create the jobs of the

future? Our science correspondent David Gregory Kumar has been

investigating. Frozen Blood. New ways make silicon

chips and hydrogen cars. All products of Tomorrow's World. And

all part of a ?50 million project, the Science City Research Alliance,

involving the University of Birmingham, the University of

Warwick and Industry. Science City cash helped buy this equipment and

pay for this lab. Giant magnets providing industry with insights

into everything from ice cream to catalytic converters for cars. It's

a great facility. It offers a lot. The big picture is to try and reduce

the cost of these catalysts whilst trying to maximise efficiency.

Better catalytic converters is good news for our car`makers. But Science

City doesn't just work with established companies, it encourages

scientists to set up companies of their own. And that could also be

very good news for the region. We do have a company. We spun out

Irresistible Materials in 2011. There is a company that is based

actually in the middle that we are actively talking to at the moment

about how we develop this technology them. So in five years, Science City

means almost 500 jobs created and safeguarded. 12 new businesses

formed. 1,000 academic papers published. But also two of our

strongest research universities working together for the first time.

There has to be impact of this research and quite rightly so,

something the taxpayer sees as a return on their investment in

science. And so a lot of the emphasis of the people involved in

this programme has been to make these collaborations with industry,

so that there is a product at the end of that there is a real impact

of a company that is generating wealth in this region. No more ivory

towers. The future is about turning our best cutting edge research into

products, companies and jobs. Goal`line technology, there is an

invention that was somewhat controversial when it first came

back, . Four years ago, we feature Duncan Williams goal`line technology

per rugby and how as it progressed? It has moved forward a lot, American

football have taken it. It is moving forward and in the right way.

Talkers through it. It provides an electronic invisible curtain,

covered by lasers. When you break them, you score, as simple as that.

We have used it in military technology, it is well proven. And

it puts an end to arguments. So while you wait for the RFU to make

up their mind, what are you working on? Yes, they take a while. We're

working on stress`related equipment for the medical industry.

Stress`related equipment is superb and it is what the World Health

Organisation advocate all over the world, really successful and going

places. You can find out more from RIA technology, on the Facebook page

`` I ate technology. I'm going to put this to the test. Steffan

Hildred, top scorer but Telford this season, is wearing the right kit.

Take it away. Let's make that 214 points this

season. Well done, a couple of points there

and want to raise over here about the Microcab. John Jostins is the

Chief Executive of the company and a professor at Coventry University.

How does this work? It is powered by hydrogen fuel cells. It is an

electric vehicle but it makes its own electricity on`board using

hydrogen gas stored in a tank, which is then fed to the fuel cell and

combined with oxygen over platinum, creating electricity. Essentially,

it is powered by hydrogen. Is it going to take off? We get a lot of

question about hydrogen. It is a perfectly save fuel, stored in a

compressed tank. Has it been taken up yet? It is early stage. The

Microcab remade, along with Coventry University, is to look into the

future of low carbon mobility and transport and this is one aspect we

are experimenting with. John, thank you very much.

What is made in the rule all areas of the West Midlands is a vital part

of the economy and I have a great example here `` rural. You are the

oldest licensed brewery in the country, Three Tuns. How have you

managed to weather the storm? We produce unique beers because we old

recipes and old yeast that dates back to about 1880, I mean, like you

say... So that is the yeast that keeps on giving? Yes, you added to

each brew and then take it off that brew and added to the next. We

talked about export but you can't get involved in that because it

doesn't travel so well. No, we mostly supply the local area but we

do get a lot of people coming from America to look at our brewery,

because it is very old. Josh, you are an apprentice, are you enjoying

it? I am, really enjoying it and Steve is a great teacher. So happy

brewing, chaps. But it is not just be that we make, lots of alcohol

there, and food, we talked about the East End foods, don't forget

oatcakes from Staffordshire and Cadburys chocolate, I vaguely

recognise the face, but I'm not sure about the teeth.

I am very flattered, I am not certain about the team. It is time

for the weather now. Shefali is sitting in a motor boat, so I

suppose we will get the shipping forecast.

Not quite, thankfully I won't be talking about them this week but

this little boat, called Fletcher if you know their boats, perfect for

skipping across the surface of receding waters. But we do have more

rain on the way in the next 12`18 hours because that area of low

pressure I mention at the beginning of the week, that always had the

potential to cause problems, looks like it will do. It is cutting

across the southern half of the country, clipping the southern part

of our region and bringing up 20 millimetres of rain at most, but

that is quite a bit, and it is going to bring in snow as well. The area

is turning colder, so we have warning service over the rush hour

tomorrow morning. Could produce about two centimetres over lower

levels and certainly over areas above 300 metres, but only for the

southern and western part of the region. We start tonight with clear

skies and there will be pockets of Frost, and as the cloud thickens up

ahead of this area of rain, it will creep into southern parts of the

region, producing some snow, as I said, in those areas and during the

first part of tomorrow morning. That is when it is going to be fairly

treacherous but further north, in Staffordshire, you probably won't

notice anything. Some sunshine to be had there. Their name a Morceli and

drive starts `` anymore sunny and dry start. Frost overnight and into

the start on Saturday. You don't get to take it home, I'm

afraid. We all joined again by Lord Digby Jones. If there is one message

you could give to the Government that will help all of the businesses

across the West Midlands continue to grow, what would it be? We need more

and better skilled people. The West Midlands has got the youngest

population in the country and the lowest skills base in the country. I

say that with shame, not private. But all of this, everything you have

just been talking to all of these people about, it is value added,

quality brand innovation. You can't do that if you haven't got skilled

people. In the old days, it didn't matter if you couldn't read, write,

you were in the steel could, under a car planned career didn't need

skills. Today, you need a Ph.D. S in rocket science can be just need to

be able to read, write, count and operate a computer and if we don't

have an education system that turns kids out at 16 can do that, every

small business person watching this will say, "I know what you mean, I

can't get skilled people. " That is the biggest challenge the region

has. What about the companies themselves question mark work with

your local school, work with your local college. May be `` but

whatever you do, export. All of this is about exporting. Have the

courage, so what you got, you are good at it. We will have to leave it

there, thank you. We have been so proud to show you

what is made in evidence, I'm sorry we show you everything.