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Government funding for fire industry exporting initiatives is drying up. This approach is short sighted, argues Wilf Butcher, as UK companies are in danger of losing out to other countries.
The role of the exporter is not, in many respects, a topic normally debated in the general fire arena. But I believe it is one that is a fundamentally important aspect of the fire protection industry. But before we look into the world of exporting, it is perhaps worth understanding just what the fire protection industry is worth to the wealth of this nation. Last year, a major industry survey showed that it has grown from GB pound 2 billion in 2001 to GB pound 3 billion in 2006. The active fire protection sector accounted for some GB pound 1.2 billion and built in ‘passive’ fire protection accounted for GB pound 1.8 billion.
The export of British manufactured fire protection products and systems means a great deal. Many of the major markets that we sell to, such as the Middle East and the Far East, have based their standards on those developed here in the UK. But it is by no means certain that this advantageous state of affairs will continue. Progressively and systematically British and European standards are losing ground to American ones, not just in many of the new markets that have unfolded over the last ten years, but established markets in our own export market back yard. Why is this?
While I accept that I could be accused of oversimplification, it all boils down to whether you are prepared to pay for British standards – which collectively can run into thousands of pounds – or whether you opt to take advantage of standards which are offered and supported free of charge.
This is the choice presented to specifiers around the world. Do they continue to develop projects based on the standards they have recognised for many years, or do they embrace the US model and take advantage of all they proclaim to offer, at no apparent cost? The issue is real, happening now, and it affects the whole of the British construction industry.
Doing its bit
The fire industry is playing an absolutely pivotal role in developing the UK’s development of European harmonised standards, by investing millions of pounds of its own money in the testing process. But such significant investment will count for nothing if US standards continue to erode our international markets. The alternative is that our industry will be forced to reinvest into testing to American standards, or lose these markets altogether. The market is a tough one and the fire industry needs all the help it can get, so how is government supporting us in this venture?
Seven years ago, UK Trade & Investment recognised the significance of supporting our industry and worked with us to create the Fire Industry Export Council. By working in partnership with each other, many successful export initiatives were developed, which in turn assisted many fire companies to move into the global marketplace.
All good things inevitably come to an end, however, and following a government appraisal of the strategic importance of each facet of British industry, the fire industry, together with security and police, found ourselves bound together as number 35 of 36 in the pecking order of industry group importance.
UK Trade & Investment did, however, continue to provide support to this approved trade organisation (ATO) grouping on a regional basis. More recently, further government initiatives have placed the emphasis on inward investment. I have no objection to this, provided that this is not an exercise in ‘robbing Peter to pay Paul’ using the same pot of funding.
Regrettably and inevitably, we seem to be paying the price for this policy. We reached the point in 2007 where overseas industry missions were funded almost entirely by the UK fire industry. One such mission took place earlier last year to the Czech Republic and Romania, markets aggressively promoted to by the Germans and Americans.
Too expensive
Thanks to the very hard work of the two British embassies, however, they managed to bring together just about everyone who was anyone in their respective industries to meet the UK delegation. The sad thing is that many of the companies that could have benefited from this mission were not there because they could not afford it. And what happens in the next financial year? As we understand it, the answer is – zero funding!
Is our situation unique or is it the same in the rest of Europe? One way to find out is to compare the way in which governments sponsor their industries at international exhibitions. Up until very recently, the annual government spend in support of UK companies was around GB pound 20 million. Last year, the sum was reduced to GB pound 8 million and funding ran out within five months. This year funding remains at the same level.
In Germany, investment stands at GB pound 25 million to support some three hundred trade shows. At last year’s ‘big five’ exhibition in Dubai, there were over 300 German exhibitors, while there were under 70 from the UK. Such disparity in funding is simply encouraging our competitors to storm right past us. And why, at one of our industry’s flagship exhibitions – Intersec 2008 also in Dubai – has the number of UK participating companies, which has been steadily climbing since the launch event 10 years ago, suddenly dropped for the first time?
You may take the view that industry is big enough and strong enough to fight its own corner. Indeed, the fire, security and police sectors are now working very closely together to develop ways in which we can mutually support each other. But exporting is also a partnership between industry and government and the two, in my opinion are inextricably entwined. I am told that for every GB pound 1 spent by the government in support of export, industry produces a return of GB pound 17.
If this government is serious about supporting our industry’s export initiatives, then it needs to listen to the people who know and understand the market.