Background

The Accelerate programme has been running in the West Midlands for 10 years, with the objective of helping to develop manufacturing companies in the automotive sector.  It has received substantial funding from a number of government sources to achieve this objective.  Much of the funding has been spent on consultative activity, aimed at improving the competitiveness, mainly at an operational level, of the small to medium sized manufacturer - the SME.  Many companies are now lean and fit, but are finding themselves increasingly short of work and long-term work prospects.  This has changed the emphasis for funded support required, from Lean manufacturing to Marketing, Sales and Product Development.

The ABDN support group comprise a team of consultants formerly of AEA Ltd, one of the leading Accelerate support consultants. Members of the ABDN team have helped over 40 West Midlands SME’s in the last eight years, to achieve a world-class business capability. The experience, which has involved working with both individual companies and networks of companies, has given a clear insight into the issues and opportunities that exist in the SME sector. (See www.aeaconsult.co.uk. Remove)

The ABDN support group’s experience, through funded Accelerate programmes, has revealed a number of key issues and opportunities for manufacturers.  Whilst these are not new, collectively they have helped to position the ABDN in terms of addressing the real support requirements of SME manufacturers in the West Midlands . At the same time, the Network provides buyers with advice and guidance towards the best solution with the best suppliers for the task.

Some of the issues faced by UK manufacturing suppliers.

• Single component manufacturers with old technology are in a very vulnerable position and are likely to go out of business

• Lean manufacturing techniques are no longer good enough to guarantee survival

• There is huge amount of spare capacity and capability in the West Midlands , if only it could be more fully utilised

• Lack of marketing and selling resource is restricting the growth of many small manufacturers

• Lack of understanding of IT based marketing tools is restricting growth of many companies

• Many companies are unaware of the global marketing opportunities available, or how to go about securing them

• Manufacturers need to invest in new capital plant to differentiate or maintain market presence

• Automotive manufacturers have to diversify into new market sectors

• Manufacturers need to move towards more added-value products

• Third party support should become more readily accessible and relevant

• Marketing and selling support should be more readily available

• Manufacturers need new work now, to survive, as well as more added-value work later

• There needs to be a transition period of support from where they are now to where they need to be addressing short, medium and long term product requirements

• Collaborative working in a network, independently supported is available to those companies who can see the following benefits:

o      Having a professional marketing front-end for all members of the network, both individually and collectively

o      Each company has an extra layer of marketing and selling support

o     The network will grow in strength and influence on a demand driven basis

o      Work is being found at a component, sub-assembly and product level offering work at an individual company and collaborative level

o      Jobs that demand it are managed through a web-based project management system, with full visibility to customers and suppliers

o      Often, significant business relationships are built from small beginnings

o      Network members can tackle more added-value work, by collaborating with other network members or a lead manufacturer

o      Network members are inter-trading and sharing unwanted leads amongst themselves

o      Third parties are selected on a permanent or demand driven basis on behalf of the members

o      The network has a Buyer driven influence with people who understand the global pressures in Purchasing and can help to align the direction of the network

o      The ABDN is keen to talk to buyers who can influence the shape and direction of the network and at the same time benefit from an inside knowledge of the network and how it can be of benefit to them

o      The network offers an unlimited amount of manufacturing capability and capacity to a wide range of customers

o      Suppliers can join the network at no cost to themselves

Global market pressures, particularly in the automotive sector, have caused a number of manufacturers to go out of business.  Lean manufacturing methods alone, are no longer good enough to secure a profitable niche in the market.  It is increasingly essential to develop and produce higher added-value products and processes to differentiate UK manufacturers from foreign competition. 

There are good reasons to believe that if we can do this effectively, customers will want to deal with a well-organised supply group.

Results to-date are proving that the ABDN is such a group and that through the network; West Midlands manufacturers are beginning to achieve a vital competitive edge.