A change of strategy is needed if Wales is to establish a sustainable and competitive manufacturing sector, according to Professor Robert Huggins of Cardiff ’s School of Management. He has come up with a strategy for tackling the challenges in Wales’ manufacturing sector in a report for innovation agency Nesta.
Professor Huggins said that the Welsh Assembly “should better identify and map key global communities of practice, and then make SMEs better aware of these communities.” A more radical approach to overseas missions is needed, he argued, with traditional trade missions not offering long-term benefits to companies which take part. “Trade missions such as those operated through the Assembly often provide SMEs with an unrivalled opportunity to gain international know-how. However, the short-term nature of these missions often limits the extent to which know-how and other useful knowledge is transferred. The Assembly should undertake feasibility studies to evaluate different forms of mission that are not necessarily focused on exports, but more on allowing firms to establish long-term and strategic relationships across their supply and value-chain.”
The emerging markets in Brazil, Russia,India and China will take on more importance for Welsh firms in the future, said the professor. “The cultural barriers — not least language — for SMEs seeking to engage and source knowledge from these economies are often considerably greater than the more traditional sources, hindering potential network and partnership development.
“While larger firms may be able to engage consultants and associates to alleviate these barriers, many small firms lack the resources to finance such activities. The Assembly has a potentially important role to play in helping SMEs become attuned to cultural issues and improving access to these new developing economies.”