Leading economist David Bailey predicts 2011 will be a good year for West Midlands manufactures despite uncertainties surrounding the economy.
The Coventry University Business professor said last year had seen manufacturing bounce back and believes it will continue to outperform the wider economy this year.
The Midlands has seen its fair share of economic problems, more recently with the Kraft takeover of Cadbury. “Cadbury should never have been in the situation where it was vulnerable to such a takeover,” said Professor Bailey. “There needs to be the reinsertion of a broader public interest test back into UK law. That would give the government a right to have a say on such takeovers, something which the last government gave up.” Writes Megan Chapple…
Professor Bailey said; “Manufacturing is an essential part of that and can provide high quality well paid jobs” and believes the government needs to offer more support to smaller businesses.
He also outlined the dangers facing manufacturing this year by saying; “the speed at which the Government is cutting the deficit may also dent confidence in the economy.”
In light of the Bank of England expressing its need to raise interest rates, he added; “a low interest rate is needed to keep the economy growing, to help manufacturers invest and build capacity, and to keep sterling at a competitive level so that firms can grow exports”.