BWF letter to Chancellor outlines opportunities to boost the fortunes of Britain’s joinery manufacturers

In the BWF’s Post-Election Budget submission to the Chancellor of the Exchequer George Osborne, Chief Executive Iain McIlwee outlined opportunities to boost the fortunes of Britain’s joinery manufacturers through support for investment, incentives to bring new talent in to the industry, and a cohesive long-term strategy for construction.

The letter, which was sent in advance of next week’s Budget announcement, focused on three vital catalysts for a strong UK joinery industry:

A long-term plan for construction

Businesses need a long-term strategic view of what they can expect from the new Government.  In uncertain times, we need reassurance that this is a government focussed on manufacturing and supporting those businesses that are truly adding value and creating jobs for the economy.  The Construction 2025: Industrial Strategy was a positive outcome from the last Government, and we would hope to see the principles agreed between Government and Industry carried over into this term.

Support for UK manufacturing investment

Many joinery manufacturers operate in an environment where companies are constantly balancing cash-flow and seeking to use what is available to invest in growth.  Banks remain reticent to loan money without unrealistic security expectations and payment practices continue to create problems, particularly for SMEs. The review of Business Rates is critical in this context, to ensure that growth and investment are not penalised and this tax does not leave UK manufacturers disadvantaged.

Turnover and profit do not always walk hand in hand and BWF members are competing with aggressively priced imports and rising wage bills. In the previous quarter alone, the latest BWF Joinery State of Trade Survey indicated that raw material costs increased for 78% of respondents on balance, with wages/salaries rising for 73%, having increased sharply as a cost factor over the last two quarters.

Nurturing the skills needed to meet demand

Across construction it is labour shortage that is now emerging as the most significant restrictor of growth.  The sector is left with real concerns in the wake of the Apprenticeship Review and careful consideration needs to be given to ensure that companies taking on an apprentice will not face an undue burden. The work of the CITB is critical and the Triennial Review needs to be published to provide clarity around the future of this support. As changes are implemented we must remain focussed on quality and also be wary of creating short-term pipeline issues.

Follow the link to view the BWF's 2015 Budget submission letter to the Chancellor.