SCOTTISH manufacturers have been urged to ramp up their export business to take advantage of the fall in the value of sterling since the Brexit vote.
Nick Shields, director of Scottish Manufacturing Advisory Service (SMAS), said the depreciation of the pound versus the dollar and the euro since June 23 is providing a short-term boost for manufacturers which sell their goods overseas.
However, he noted that the reversal in the pound’s fortunes since the UK controversially voted to leave the UK amounts to a “zero sum gain” for Scottish manufacturers which rely on importing components.
Mr Shields was speaking ahead of the forthcoming SMAS conference, which takes place at the Westerwood Hotel in Cumbernauld on September 7 and 8.
The conference, which is expected to attract around 400 delegates, allows Scottish manufacturers to share best practice, explore ways to reduce costs, and gain an insight into innovations which may improve their businesses.
Commenting ton the impact of the Brexit vote, Mr Shields said: “Never has there been a time to be more competitive. The short-term result is [that] it makes our exported products cheaper, which is good for companies who have all their supply chains here in Scotland. Our food and drink companies can benefit from that.
“Other business who may import components, it’s maybe a bit of a zero sum game for them. For these businesses [which are] primarily export-oriented there has never been a better time to be as productive as you possibly can. And that’s what our conference is all about.”
Mr Shields, whose organisation is an offshoot of Scottish Enterprise, said a “real mixture” of small and large companies will attend the conference, representing a broad range of sectors. These will include Stewart Milne Timber Systems, Macphie of Glenbervie and Lamond and Murray, a small engineering company based in Dalgety Bay.
The speaker line-up includes Sarah Jardine, operations director of retinal scanner specialist Optos (now owned by Nikon of Japan), Rolls-Royce global manufacturing director Hamid Mughal, and James Woudhuysen, forecaster and visiting professor of London South Bank University.
Mr Shields said: “Manufacturers are always keen to learn and share from each other. This is our opportunity to have a showcase for all that is great about Scottish manufacturing."
Asked to assess the importance of manufacturing to Scotland, Mr Shields said it accounts for around 10 per cent of the economy, broadly in line with the UK and US.
He noted that the sector continues to be the country’s biggest source of exports, representing 54 per cent of the total, and a driver of economic growth thanks to its investment in research and development.
Mr Shields said: “It’s something we are keen to support and see thrive. Some areas that support oil and gas have obviously struggled with the recent downturn, but other areas such as the food sector have seen excellent levels of growth and investment as well.”
He added: “As ever these things are a mixed bag. We have got some particular challenges in Scotland but there are still great businesses out there doing fantastic things on a world stage.”
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