Sep 26 2006
The Packaging Federation has published its latest state-of-the-nation UK Market Report which contains an update on the Action Plan in the Competitiveness Study undertaken for the DTI in 2003 by PIRA with PF assistance.
Said Ian Dent, Chief Executive of the PF, ‘What was patently obvious in undertaking the review was that whilst industry has forged head and taken appropriate action such as the creation of the PF Affiliate structure to make for a better cohesive voice to Government as recommended, this was not matched with any positive action from the DTI.’
The report, which was launched at a PF event for MEPs and European Commission in Brussels last week, calls into question the role of the DTI, especially if faced with further cost reductions and questions its relevance to manufacturing industry today. Stated Dent, ‘What we need is a Department for Trade & Industry, not as now named a Department of Trade & Industry, that is a Department which works with and for industry, rather the current model, which sits back and waits for manufacturing industry to be on its knees before taking notice – let alone action!’
There are a number of recommendations in the report based around competitiveness issues including energy and regulations, but a clear message to have a packaging ‘champion’ within DTI to recognise the importance of packaging manufacturing to the UK economy.
Concluded Dent, ‘The stark fact is that the continued rationalisation in the UK packaging manufacturing sector has been focused since 2004 on the need to manufacture outside of the UK in order to keep pace with the major customer moves to the new Member States in Europe and Asia. This leaves the UK vulnerable, and in need of a recognised effort by the Government to work with the sector and its supply chains to make UK an attractive place to invest, contrary to the spin we see on this subject.’
As well as the critique of the competitiveness study, the report also contains an update on the usual headline data on turnover, balance of trade, employment and recycling. There is also a special commentary from Dominic Cakebread, Managing Director of Landell Mills Consulting, the PF research partners, on his views of future challenges facing the sector.
The report will also be discussed with UK MPs at the AGM for the All-Party Parliamentary Group for Packaging Manufacture on 1 November in the House of Commons.