Walk down any high street in Birmingham now and you can see how hard businesses are working to woo Christmas shoppers. Shelves stacked high, festive music and decorations, extra staff are laid on to encourage consumers to spend. With competition fiercer than ever, businesses are investing in those extra touches to make sure this Christmas delivers.
But what we don’t always see is the months and years of hard work undertaken by businesses, to get the gifts, treats and higher ticket items out to market in time.
Birmingham was built on the back of successful, large scale manufacturers in the Victorian era. Over time, some of these businesses have struggled to keep pace with modern manufacturing. Low productivity levels, that can’t compete with modern global standards, have resulted in companies moving manufacturing away from the West Midlands. But those local survivors, such as Jaguar Land Rover, JCB and Kraft Foods, have all adapted their business model for the 21st century.
Times are still tough, there’s no doubt. Our businesses are operating in the backdrop of declining consumer spending and challenging economic conditions.
So how are these businesses surviving – and thriving – in challenging times? Times that have become even more challenging through the eurozone crisis. The instability and uncertainty this is bringing makes businesses nervous about trading in Europe.
That is the last situation we need because British businesses are being urged to export the country out of trouble. How can smaller businesses already operating on a lean budget trade with certainty today in Europe without knowing what the economic situation is going to be tomorrow, let alone next year?
And in tough economic times, some businesses’ immediate reaction is to slow investment. Progressive businesses, on the other hand, know they need to invest for the long-term to secure their future. While it is sensible to cut some costs, businesses that don’t invest stand still, and soon get left behind.
Kraft Foods’ announcement that it is investing £44 million into chocolate manufacturing will have a significant impact on the future productivity of the company. At a time when the government and UK economy is looking to manufacturing to drive growth, this is good news.
As Kraft explained, the investment programme will expand its manufacturing capacity and drive production levels across the UK. And, of course, at the heart of this capacity lies Bournville. But, if Bournville is to compete successfully on the global stage, it needs to be able to deliver world-class productivity levels. This move is about keeping a local, iconic brand as internationally competitive as we can. In this day and age, that can only be achieved through the installation of continuously enhanced, cutting edge technology.
Productivity is a race without a finish, so companies with their eye on remaining competitive and cutting edge can never give guarantees on job numbers. What can be guaranteed is that businesses that drive productivity up stand the best chance of securing their future, and supplying long-term, sustainable jobs.