Ford - Making it Happen in London Thames Gateway

As an Executive Director for Ford of Britain, as well as a board member for Gateway to London, Bob Blenkinsop is well placed to comment on manufacturing in London Thames Gateway. In this piece he talks about the changes in this key business sector, his own experiences with Ford and the challenges that manufacturing faces in the region.

Manufacturing industries in London Thames Gateway have witnessed huge changes in the last five years. The challenges presented by low-cost manufacturing sources in emerging markets are relentless, but the work done by Gateway to London and the recent investment by Ford at Dagenham has demonstrated that there is a future for manufacturing in the Thames Gateway. The manufacturing sector now represents a quarter of all projects handled by the GtL team, and the number of projects has increased in each of the last two years. However, we still need to be realistic about the competitive challenge, identify those activities that can operate in the UK and gain a competitive advantage, and continue to work on those key areas where we really have to excel to secure a successful future for manufacturing in the UK.

The first key area is in providing opportunities for skills development and anticipating manufacturers' future skill requirements. Alistair Darling recently launched the National Skills Academy for Manufacturing, which aims to create training and education programmes and provide capacity which will achieve national standards for training delivery and help employers to meet the demands of global competition in terms of improved productivity, competitiveness and profitability. This is a major step forward and Ford is proud to be a founder partner in the academy, the London arm of which is based right here at the Centre for Engineering and Manufacturing Excellence (CEME) (www.ceme.co.uk) in Rainham. We have also partnered with the Learning & Skills Council and the LDA, who have worked hard to support the upskilling of our workforce at Dagenham.

Secondly, transport infrastructure must be able to meet the demands of national and international distribution networks. In London Thames Gateway, a range of improvements have already transformed distribution networks. The Channel Tunnel Rail Link into Ebbsfleet and Stratford International provides access to the markets of mainland Europe. More locally, future plans such as Crossrail will provide another transport boost for businesses and local residents. Improvements to the local and regional road network have been made in the last five years, notably on the A13, but there is still work to be done, particularly with a decision on the much needed Thames Gateway Bridge, to ensure the transport infrastructure can cope with the economic growth of the region. This must, of course, tie in with significant investment in public transport including more buses and a DLR link to Dagenham.

I would say the third key factor in securing the region's manufacturing success has to be a well developed support network for manufacturing SMEs. CEME has been a major step forward for the region, offering a facility where business can not only gain access to education and training, but also access to facilities, tools, resources and a network of other business.

If we look back to 2002, when Gateway to London was formed, we were seeing a reduction in heavy industry, and less demand for large sites and facilities. The manufacturing landscape in Britain has changed, the focus was, at that time, just beginning to shift to smaller, leaner companies creating niche and specialist products responding to demands from customers, and this is now the modern-day London Thames Gateway manufacturing template.

Gateway to London's work in the region shows that there are still opportunities for manufacturing firms and these are growing significantly. Major infrastructure projects such as the 2012 Olympics and High Speed 1, alongside improved access to European markets, are bringing huge opportunities. Manufacturers need to be forward thinking.

Ford has changed considerably over the past five years. In 2002 we ended vehicle assembly at the Dagenham plant and have moved to embrace new technologies and systems that can add greater efficiency to our products. Our commitment to Dagenham and London Thames Gateway at that time was that we would have a sustainable presence at Dagenham and that it would become our Centre of Excellence for the manufacture of Diesel Engines. I am delighted that we have delivered on that commitment. The undisputed highlight of recent years has been the launch of Ford's new economical 1.4 and 1.6 litre diesel engines with an investment of £169 million and over 500 new jobs into the Dagenham plant. This has enabled us to increase production with a target to produce more than 1,000,000 engines per year by 2009.

The last few years has also seen Ford establish an environmental programme. Like all companies, both in London Thames Gateway and across the UK, we have recognised the need to address any negative impacts our business may have on the environment, and it is a challenge particularly for all motor manufacturers to rise to. Ford has established a programme which ensures we can address these issues whilst being cost efficient and demonstrating a commitment to the local community.

Ford's Dagenham plant is already the only wind-powered car plant in the world, with 3.6MW capacity turbines producing over 6,000,000 kWh of renewable electricity. We are also now deploying a plan to improve environmental efficiency, including a reduction in gas and electricity consumption; we have already reduced our plant's CO2 emissions by 6,500 tonnes, as well as avoiding 12,620 tonnes of landfill. We have also introduced 'green' vegetable oil for metal working and other fluid actions, which means over 500,000 litres of mineral oil has been saved.

Investment in research and development is a vital element, and with technology advancing so quickly, businesses need to be aware of new products and new ways to increase efficiency and turnover. Ford has been a market leader in the UK for over 30 years and we believe that strength is derived in part from the fact that we account for 80 per cent of all national automotive research and development investment. We also lead in job creation, in the last 18 months Ford of Britain has created 1,000 new jobs, including 100 new engineers at our Dunton technical centre.

Ford continues to be a market leader, with a 15.9 per cent total UK vehicle share and an increasing profile across Europe. European sales have increased by five per cent per annum over the past two years and this year will see nearly two million new Ford vehicles on the roads of Europe. We are one of the strongest automotive brands, and in the Transit and the Focus, we have the best selling commercial vehicle and car, respectively, in the UK. We are proud to be based in Dagenham and London Thames Gateway.

Above all, no manufacturer operating in the UK can afford to be complacent, and at Ford we will only be able to commit further investment where there is a strong business case to do so. As Ford now has manufacturing facilities in Turkey and Russia, and is currently seeking to acquire a facility in Romania, there is very strong internal competition for investment. However, I continue to see opportunities in the UK. This year, for instance, we are expanding our logistics operations, based on site at Dagenham, to take over the management of all deliveries to our UK dealer network.

We have quite a responsibility for jobs in the local area and I am excited about the future. Gateway to London and I will continue to work to ensure that more opportunities are delivered for manufacturing firms in the region across a wide range of sectors.

Bob Blenkinsop
Executive Director of Ford of Britain and Gateway to London Board Member