This item was published during the term of a previous administration that ended in April 2007
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Manufacturing sector can "take off"
05/09/2002
Enterprise Minister Iain Gray today re-affirmed his view
that by investing in technology and concentrating on
innovation, Scottish manufacturing can achieve sustainable
growth in the long term.
He was speaking during a visit to BAE SYSTEMS' Avionics
site at Crewe Toll in Edinburgh with the Secretary of State
for Trade and Industry, Patricia Hewitt, and the Secretary
of State for Scotland, Helen Liddell.
During the visit the Ministers were shown the next
generation of avionic products being developed by the
company, which they hope will enable them to capture a
large part of the global avionics market.
Speaking at the Crewe Toll site, Mr Gray said:
"There can be no doubt that the manufacturing sector in
Scotland has had to face some pretty tough times of late.
Global economic conditions have made it increasingly
difficult for our own indigenous firms to expand into
global markets, while at the same time overseas companies
have come under pressure to reduce their own
investments.
"This is why I am completely convinced that the best way
for the sector in Scotland to achieve real, sustainable
growth is to concentrate on excellence and innovation. BAE
SYSTEMS have shown that they have the capability to lead
the world in avionics and it is for other firms to follow
this lead."
The Minister continued:
"What is also clear is that this push for innovation
applies to manufacturing right across the board - not just
in high-tech sectors. All manufacturers can benefit from
investing in skills and innovation - from producers of
cutting edge technology such as that here at BAE SYSTEMS to
our more traditional industries such as drink and
textiles.
"It is by doing this, by building on Scotland's
reputation for excellence and innovation, that we can
deliver a
Smart, Successful Scotland."
Jonathan Flint, Managing Director of BAE SYSTEMS
Avionics group, said:
'BAE SYSTEMS is honoured to demonstrate our microwave
and optical technology to Government. Recognising the
increasing demand for smart technology in defence, we have
invested £55 million into this facility to keep us at the
forefront of global technology. Our strong heritage and the
expertise we draw from Scotland is second to none.'
Later in the afternoon Iain Gray, Mrs Liddell and Ms
Hewitt met Scottish manufacturing representatives and trade
unions in Edinburgh.
The manufacturing sector contributes a fifth of GDP in
Scotland. There are almost 290,000 employee jobs (13% of
the workforce), with an estimated further 150,000 indirect
employee jobs in manufacturing.
Until recently, manufacturing focused on the process of
production. Today, it is more about creating than making.
Manufacturing integrates R&D, design, supply,
production, software, services, distribution, delivery and
aftercare. Successful Scottish manufacturers concentrate on
those parts of the process which add real value.
The Scottish Manufacturing Steering Group was set up by
the former Enterprise Minister, Henry McLeish in 1999 to
advise the Scottish Executive on how best to support
Scottish manufacturing. Iain Gray has asked the group to
reconvene under the chair of Chris Masters to review
progress and to consider what further action is needed to
support manufacturing. The re-setablished Group meets on
the 10 October.
BAE SYSTEMS Avionics employs over 2,500 people in
Edinburgh out of a total Scottish workforce of over 8,100
employees.
Sensor Systems Division (SSD) is the
Division of BAE SYSTEMS which specialises in the design,
development and manufacture of high technology sensors for
the military environment. Particular areas of technology
are Radar and Electro Optical systems. There are over 2,500
people in Edinburgh, the majority of whom are professional
staff involved in state-of-the-art technology.
The business has a turnover of around £0.5bn and has
carved itself a strong position in its chosen technologies
in a market dominated by the US defence giants (Boeing,
Lockheed-Martin and Raytheon).
This item was first posted on September 6, 2002.