Honda is leading big drive

8:00am Wednesday 17th October 2007

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PRODUCTION in the south west has hit record levels, and the town's Honda plant has been at the forefront of the success.

The British Chamber of Commerce net sales index shows that 36 per cent more manufacturers experienced a rise in domestic sales during the third quarter of the year - creating a record for the index, which began in 1989.

Arthur Richardson, director of the South West Manufacturing Advisory Service, said: "It has been more than a decade since the movement to offshore manufacturing began.

"Companies in the south west lost out to this trend but things have come full circle, with these low-wage rate locations starting to face the flipside of high growth, such as rising inflation, and decision-makers becoming disillusioned by unexpected additional costs.

"While this transition has been taking place, manufacturers in the UK have not stood still.

"By embracing lean manufacturing, pushing up productivity and investing in technology and specialist skills, the industry in the UK is carving out its own path."

One company which has carved out its own path has been Honda in Swindon.

Because demand for its products have been so great the company has upped its workforce by more than 700.

"It is certainly good news on the manufacturing front," said Julie Cameron, head of corporate communications at Honda's South Marston factory.

"We have increased our annual production of vehicles from 190,000 to 250,000 over the past year demand for the CR-V, our 4x4, has increased by 90 per cent year on year.

"We appreciate that manufacturing is extremely important to the health and wealth of the country and we are pleased at Honda to be doing our bit."

Mr Richardson also believes the growth of other sectors in the UK, such aerospace, automotive, food and drink and construction, where there is a need for skilled, niche manufacturing has been fundamental in fuelling sales.

He said: "Automated processes, streamlined operations, high levels of customer service, innovation excellence and an investment in upskilling are making small, niche manufacturers in the UK the number one choice for a number of thriving industries which also have a desire to support British operators.

"The time is now for an industry which has certainly gone through the mill in recent years but is on the brink of once again becoming a global force to be reckoned with."