The first in a three part series compiled by one of our young English Radicals.
Many UK retailers are now discovering that clothing manufacture in the Far East no longer has the same attraction as it once did, due to rising labour charges and increased freight costs. The need to be reactive to the impatient and fast paced fashion industry is great, and the most suitable answer to the problem is to return to English and UK manufacturing. However this is not a simple solution, since retailers deserted English factories for low cost China, manufacturing went into decline, factories were left no option but to close, and universities and colleges put a greater emphasis on designing rather than learning how to technically construct garments. This has left England with a missing generation of skilled workers and artisans, and with the current employee base ageing considerably something has to be done.
This situation isn’t getting any better, it took another hit, when De Montefort University announced that they were axing their BSc Fashion Technology course, due to lack of government funding. This particular course has a 100% employment rate and is highly regarded, mainly due to the fact that their graduates are highly trained in a wide range of technical skills, which are greatly needed by many English retailers. Despite the fact that Ed Vaizey has been vocal about the importance of these skills and how he would like to see British manufacturing grow again, there doesn’t seem to be any action from the government. Which begs the question how supportive is the British government of the English manufacturing industry. And the answer is they’re not!
The Ministry of Defence had a very good opportunity to support the English manufacturers; instead they turned their back and gave to the multi million pound contract to produce camouflage gear to the Chinese. When questioned, the MoD spokesman stated ‘Our focus is on getting the Armed Forces the equipment they require, when they need it, at a reasonable cost to the taxpayer. In the last two years British companies have won 87% of clothing contracts.’ In the act of saving a few pence per camouflage trousers, surely they are depriving a perfectly good English manufacturer who employs many tens if not hundreds of workers a contract, which could give their current employees stability, and also lead them to create more jobs, which overall is highly beneficial to the economy and in the long run to the taxpayers. Not only this many manufacturers, including Lee Dawson, managing director of military uniform specialist Samuel Brothers have argued that by having uniforms manufactured in China could expose the Armed Forces to potential dangers. Lee Dawson goes on to say ‘If we are sourcing from China and something goes wrong with Anglo-Chinese relationships, we have a problem, China could withdraw supply,’ leaving troops with a lack of basic clothing, not an ideal situation on the frontline!
A UK retailer Mulberry has recently enjoyed great success in the last few years, mainly due to the Roxanne and Alexa style of bags. These bags are highly sought after by celebrities and women alike, with demand so great, Mulberry can’t produce enough of them. As result it needs to open another factory and increase the capacity of their existing factory in Somerset by 30%. However Godfrey Davis, the Mulberry Chief Executive, has spoken with Drapers Magazine (a renowned Fashion Business journal), and said that he has been put off opening a new factory due to the impact of rising National Insurance (NI, up to 13.8% from 12.8%) rates on operating costs. Davis stated that ‘a constructive approach would be to give some sort of tax break to encourage [businesses] to relocate. An employer NI holiday for a number of years [would work] and UK plc would benefit because we would be creating more employment.’ Davis is presenting the British government with a constructive solution, instead of giving tax breaks or NI holidays to those who don’t manufacture here in England, give it to those who do make the effort to contribute to our economy and job market. The Government’s reaction so far has been, at the Start Britain conference, Chancellor George Osbourne stated ‘We are considering tax breaks for capital investment, which we will be looking at ([in more detail], particularly for various manufacturing businesses.’ If the British government doesn’t support Mulberry, then they may be forced to invest in their other production bases in Turkey or Spain, another wasted opportunity for English manufacturing.
This is a real opportunity for the British Government to invest in something positive, by channelling some of the money they are saving elsewhere, into giving more manufacturing contracts to English manufacturers, tax breaks and NI holidays which will allow manufacturers to grow and expand more easily, this will help to kick start English manufacturing. In the long run it will create more jobs, taking the unemployed off the dole and into more skilled jobs, contribute to the economy and overall make England a more lucrative country to manufacture in. We have the reputation of great design and highly quality manufacturing now all is left is to prove it!
In part two: Retailers have to step up to the mark, and support English manufacturers.
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