Interview with Simon Muter

UK Trade & Investment regional sector specialist for advanced engineering and emerging technologies

Can you give us an overview of what is happening in your sector in relation to export growth in the region?
Advanced engineering and metals is a very broad sector encompassing entire industries from steel and other metals and alloy processing, through to the manufacturing of high tech products for sectors including aerospace, oil and gas, automotive and even medical and household appliances. Currently around 170,000 people are employed within the sector and metal related industry is the region's largest sector by contribution to the economy.
The trend has been to move away from mass production of standardised goods (we have few manufacturing/engineering companies >500 employees) with the emphasis on small batches or customisation, exploiting our ability to offer specialised higher technical capabilities. As a result the sector is very fragmented with estimates of over 1,500 companies.

Is this a sector that is particularly important to the Yorkshire and Humber region?
Although Yorkshire and the Humber  has  no major automotive production sites or large global aerospace companies, at a national level we are leaders in metal related industry and production, with world class materials and engineering research to support this. Our region’s input to international trade is therefore upstream or within niche areas where companies have competitive products which have international appeal.

Advanced engineering (manufactured goods) is the largest sector in terms of international trade for our region, contributing over 25% (>£3bn) of all the region’s exports.  Main markets tend to be the mature markets of Europe and the US. The challenge is for our companies to participate and exploit the growth opportunities in the emerging markets of Asia and Central /Eastern Europe.

How do exports in this sector from the Yorkshire and Humber region compare with exports from the sector in other regions and are there any particular products in the sector that have seen significant growth?
Areas we excel in as a region are very diverse. The region has several areas where we supply the lead, for instance:

Specialist high quality steels and alloys, mild steels, forgings, and castings: These are supplied as feedstock into oil and gas, aerospace, medical, chemical processing and automotive applications. Our region is competitive throughout the world due to the high quality and integrity of our products. Currently this sector is very buoyant.

Precision engineering and components, new materials technologies and production, machine tools / cutting: Yorkshire & Humber has the UK’s highest concentration of companies which are internationally competitive on the supply of specialist machine tools. Many have adapted to the challenge of globalisation and are transferring their knowledge and expertise to the emerging markets

Power generation sector: Power generation supply chain and associated expertise.

Special applications: The region is a global supplier of castings to the medical implant industry and has the largest concentration of Orthopaedic companies in the UK.

Specialist mining equipment/ materials handling: Deep mining coal extraction, materials conveying and handling.  

Excellence in advanced engineering research and manufacturing technologies: The region benefits from world leading university research in metals processing, materials technologies and materials processing.

In which ways are companies from this sector entering the international market?
Unfortunately, many engineering companies are sub-contractors; selling their knowledge and expertise to market an engineering capacity resource which has little to differentiate it on an international stage. The emphasis is to move more of these companies to innovate and develop higher value added products which have international appeal, into the growing sectors such as environmental technologies, medical equipment, aerospace and oil and gas. To help with this, Yorkshire Forward has selected advanced engineering as a priority sector with major investment at an infrastructural level, attracting some world class companies and research organisations to our region. This is now a development resource for our companies to exploit and draw knowledge in order to increase their capabilities.

Could you give us a brief indication of your background and experience in this sector?
Prior to joining UKTI last year, my background has been within UK manufacturing and engineering. I spent eight years running the UK division of a worldwide specialist materials and precision components supplier, working across sectors, and subsequently, three years as general manager heading the UK operations of a family-owned European automotive components supplier where I dealt with automotive commodity buyers in the US, Mexico and throughout Europe. Having an engineering PhD, I have an affinity for supporting international research collaborations and assisting in the international commercialisation of regional university spin-out companies within the sector.

In what ways can you assist Yorkshire and Humber companies in this sector?
My primary role as sector specialist for advanced engineering is to assist companies in identifying export trade opportunities and help them focus on the best routes to market.  I would encourage any company wishing to launch into new markets, or promote new products, to consider using the UKTI local and global network to accelerate their progress. For the emerging markets, which long term offer the highest growth potential, this can involve tapping them into UKTI regional or national initiatives or linking them with our commercial staff in post overseas in order to prepare the ground for them. For instance, in 2008, the UK Advanced Engineering sector team will promote a number of high profile events in India across aerospace, automotive oil and gas showcasing the expertise that UK engineering sector has to offer India. UK engineering companies can use these events as a means to either scope out the market potential of India or establish key contacts in order to get a foothold in this difficult market.

The types of projects I get involved with are varied.  Recent projects have included working with a multinational aerospace PLC to identify engineering companies from our region to participate in their trade offset agreement with selected developing markets. As a direct result, a major trade opportunity has been presented to a local company together with the chance for them to establish manufacturing in Vietnam.

I also work directly with UKTI at a national level to create trade opportunities for our region’s engineering companies. This can involve sector focused missions supported by trade associations or events where UKTI overseas commercial officers or industry buyers are brought in to meet local companies. Several events are planned throughout 2008 to assist companies within the automotive and aerospace sectors. 

The diverse nature of the advanced engineering sector means that co-ordinating activity across the broad spectrum of engineering interests throughout the region is quite a challenge. I work to support the engineering and manufacturing groups who have interests in promoting international trade opportunities for their regional members. This can include representative bodies from oil and gas, automotive, aerospace, manufacturing technologies, materials processing, construction equipment, mining, defence suppliers and specialised printing. Within 2008 the intention is to run a number of regional international trade events with these organisations.  This list is by no means exhaustive and I am always welcome to lobbying from new representative groups looking for support on international trade.