about us

SAPs

Reduce the burden of everyday business life and improve your bottom line!

Life is a series of priorities…
Business life, like life in general, is all about priorities. We all have them. Some things are fundamental to our very survival thus the impetus to complete them is paramount and easily resolved whilst others are what we like to call ‘nice to have’ but not essential. The latter often get placed in pending and never see the light of day! Whatever our priorities, there are always some things in business life which are non-core to our everyday productivity but which, by their very nature, are essential to complete either because they have a direct impact upon our income or worse, because they fall under some form of regulation and therefore have to done whether we like it or not. One of the more obvious and most topical priorities in the latter category is the much hated tax return! We all have to do it – but it is invariably deferred until the point when the deadline can only be met with several late nights and a lot of cursing on the part of the individual responsible! Yes – we’ve all been there! Another category of priority is that which we feel sure would be good for the business if we only had time to look into it. That much publicised Research & Tax Claim that colleagues tell you is ‘well worth claiming even if you don’t think you do traditional R&D’ is one of them; or maybe it is trawling the insurance market to improve on what you are sure is an over-priced existing policy!
The fact is, there is a host of none-core business related activities which are either essential to or would significantly improve the business if only we had more time to do them!

Regulatory Affairs

“If a Trade Association does nothing else – it should act as a voice for its industry amongst politicians and senior government decision makers!”

Lord Sir Digby Jones

When Lord Sir Digby Jones spoke those words he captured the essence of why many trade associations were conceived.  Indeed, many associations do little more than lobby Government and there is no doubt that such activities should be a staple membership service for any body claiming to represent the best interests of its members.

In the past few years the BFPA has steadily increased its activities in this area and with the arrival of their current CEO who spent a period of secondment to the UK Cabinet Office whilst with BAE Systems, the lobbying activities of the Association have increased exponentially.  An article by the BFPA CEO, (see below) captures the essence of this argument and also addresses the all important question – Can we really make a difference?

“We can make a difference – we just have to go about it in the right way…”

BFPA CEO, Chris Buxton emphasises the importance and benefits of lobbying Government.

If there is one thing that a Trade Association should undertake to achieve, it is to “work effectively to represent the sectors interests at all levels of the legislative and regulatory process.”  So states the Trade Association Forum (TAF) in describing the model Trade organisation.  As a CBI sponsored body acting as the ‘trade association for trade associations’, TAF is well placed to make such judgements and defines what is widely accepted as best practice in the Association world.

Unfortunately, all too many trade association members are sceptical as to the likelihood of ever being able to influence the regulatory process and consider such lobbying activities on the part of their trade association as at best, ineffective and at worst – futile. However, such scepticism, whilst understandable, is ill-founded.  During an earlier period in my career I was fortunate enough to go on secondment to the UK Cabinet Office from what was then my current employer; BAE Systems.  Amongst the many things that I learnt from the experience was the fact that undertaken in the correct manner, (i.e. with empathy and constructive professionalism), lobbying is not only effective but is an essential element in the smooth running of any democratic Government and is actively sought-out by Government regulators and Whitehall civil servants alike.  As lobbyists we are ‘pushing on an open door.’  But such engagement has to be undertaken properly to be successful.

In effect, lobbying is a form of selling.  One party is trying to convince the other of the benefits of its policy or views.  It is a process of persuasion.  As any good Sales person knows, success comes from understanding the needs of their customer; that is; being able to empathise with the recipient of the messages that are being delivered!  Too many lobbyists, especially the smaller, less well informed organisations do not follow this simple principle and then complain that lobbying is ineffective.

Essentially, there are three fundamental steps in this process:-

1) Clearly identify your customer (in the case of lobbying this is the person or people that can actually implement the changes that you are seeking),

2) Understand him/her (i.e. determine their drivers), and understand how their organisation works, i.e. the policy-making process.

3) Tailor the lobbying proposal in such a way that it addresses the key attributes and expectations of that customer. (Whilst accounting for the political as well as the economic impacts of the proposal.)

The most important of these steps is the first.  Too many lobby groups secure a meeting with a Minister but neglect the team of civil servants who will actually develop, influence and implement the relevant government policy.  Like any good sales process, the lobbyist needs to identify the ‘decision making unit’ and engage with all of the influencers in the policy making process – up and down the echelons of Government. Another mistake often made by lobby groups is to believe that they can ‘go-it-alone’.  Such arrogance is misguided and naïve.  There are thousands of different trade associations in the UK and regulators are invariably under pressure from a plethora of different lobby groups, each with a different issue.   Consequently, they are constantly trying to ‘keep all of the people happy all of the time’, invariably with insufficient resources – an impossible aspiration. In this kind of environment it is imperative that a given industry speaks with one coherent and ‘loud’ voice if they are to be heard above the background noise.  By ‘loud’ we invariably mean with a view that represents as large a number of individual voters as is possible! In politics, votes speak volumes in every sense of the word!  No one individual, organisation or company will successfully change the regulatory landscape on their own.  That is why the BFPA has joined forces with the Engineering and Machinery Alliance, (EAMA), an alliance of twelve like-minded trade  associations, all in the engineering sector but most importantly – with common regulatory issues and aspirations. Collectively, they represent thousands of individual employees across well over a thousand companies.    Representation on this scale can begin to influence the voting landscape thus politicians are more inclined to listen.  This weight, augmented by experience of government policy-making and a professional approach to engaging with the regulators at all levels, positions EAMA and BFPA as one of the key stakeholders with whom Government engages when determining policy.

Can BFPA or EAMA claim sole credit for a whole tranche of regulatory changes?  Probably not – no one organisation can, but we can claim to have been critical and major influencers in the development of a significant range of regulatory processes which will and already have, had a major impact upon UK Engineering firms – including BFPA members.  The policies that the Chancellor announces in the annual budget are not formulated in isolation.  They are developed in conjunction with credible and established lobby groups such as EAMA and the BFPA. Topics upon which we have already been active have included Capital Allowances, Small business rate relief and property rates, improved access to finance, the new Business Bank, fuel duty, late payments, R&D Tax Credits and the all-important issue of skills and training – to name but a few.  More recently and most notably we have been successful in securing an exclusion of waste hoses and associated PPE from the hazardous framework directive saving the industry and our members £18 Million pounds a year.  [INCLUDE LINK TO PRESS RELEASE]

The BFPA Mission is essentially to help our members improve their businesses.  In other words, to help members sell more products and services.  Some of the services that we offer achieve this aim directly through cash discounts on none-core business services or web-based advertising channels but our ability and commitment to speak on behalf of the industry in the ‘corridors of power’ is perhaps one of the least well recognised and most important services that we offer.  ‘Together we stand – divided we fall!’

A SELECTION OF RECENT AND CURRENT BFPA LOBBYING ISSUES

(accordion block goes here)

Innovation for growth

Key rationale: OEMs demanding supply chain innovation and companies taking on new lines and services

Topics:

• Building depth in additive manufacturing
• Mass customisation
• Exploiting the Internet of Things and modeling in both the factory and wider supply chain
• Mass customisation

Innovation for efficiency

Key rationale: essential in the drive for re-shoring and re-industrialisation

Topics:

• Manfacturing automation (note: also contributes considerably to innovation for growth)
• Global best practice, capability and capacity self-assessment benchmarking for continuous improvement in productivity

Enabling initiatives

Key rationale: to enhance collaboration across the value chain – both with original equipment manufacturers (OEM) and between SMEs – and communication, the image of the sector and improve the record on equipment and skills investment

Topics:

• Technical and business skills development, possibly through a trade association sponsored national academy
• Small set of competency/technology based innovation centres focused on SMEs but linked to the Catapults
• Fiscal and taxation environment
• LEPs: local delivery opportunities for strengthening supply chain economics
• IP protection services
• Profile of UK machinery makers and component manufacturers in education, and with OEMs and Government

It is recommended that the implementation study adopts a four-stage approach to strategy development over a period of eighteen months.Stakeholder discussions early in the implementation study will segment the proposed projects prior to confirming the approach and resource allocation. Projects will be segmented as:

EAMA giving support and input to initiatives already running

1. Focused EAMA effort required to ensure members’ needs are met.
2. New territory in which EAMA will take a lead (initially)Support will need to be sought for this work in the first half of 2015.

KEY STAKE HOLDERS AND PARTNERS IN THE GOVERNMENT AFFAIRS ENVIRONMENT:-

– The Engineering & Machinery Alliance (EAMA)
– ORGALIME
– CETOP
– The Trade Association Forum (TAF)
– PNEUROP
– The British Bankers Association (BBA)
– The CBI
– The British Standards Institute (BSI)
– The Government Department for Business Innovation & Skills (BIS)
– UK Trade & Investment (UKTI)
– Local Government

ORGALIME:-

Orgalime is the Brussels based lobbying organisation for all engineering sectors.  It is not a UK organisation but a pan European body funded by engineering organizations from all over the EU.  It is headed by a Britain, Adrian Harris and no individual TAs can belong.  The UK members are BEAMA, GAMBICA and EAMA.  Membership of one of these bodies allows access to Orgalime and its activities.

Much of Orgalime’s work is in monitoring the flow of new legislation and regulations coming from the European Commission and preparing position papers and lobbying on behalf of its membership.  Most of the time it is trying to stop more regulations on undertaking impact assessments on existing regulations.    It is a very vociferous organisation and battles very hard against the tide of proposals which seem to come in never ending waves from the Commission and/or Parliament.   It has fought successfully on behalf of its constituents on many fronts i.e. delaying the revision of the Machinery Directive, watering down the impact of REACH on use of industrial chemicals and helping to get capital equipment such as processing and packaging machinery excluded from the first implementation of WEEE (Waste Electronic and Electrical Equipment Directive).  They have a useful website which has up-to-date briefing documents and details of legislation passing through the EU commission etc.

Orgalime is a vital source of information regarding EU activity and co-ordinates much useful lobbying on behalf of the whole engineering sector.

The equivalent for the Compressed Air community is PNEUROP.

Contact:- Adrian Harris, Tel. 00322 706 82 35, Email: secretariat@orgalime.org or website www.orgalime.org

CETOP:-

CETOP www.cetop.com is the acronym of Comité Européen des Transmissions Oléohydrauliques et Pneumatiques. CETOP is the European Fluid Power Committee.  It describes itself as:-

“The communication platform for fluid power in Europe.  The international umbrella organisation for national fluid power associations in Europe.”

Through the 18 national associations which are member of CETOP, all well-known companies in Europe belong to the European Committee. Many of these companies are leading fluid power manufacturers and major players in the international markets.

CETOP represents more than 1,000 companies – mainly manufacturers, but also some distributors – with almost 70,000 employees and a market value of about 13 billion EURO. These account for a very high proportion of companies active in these fields – 80-90% in most countries.  CETOP cooperates with ISC – the International Statistics Committee with the aim of getting global Fluid Power Statistics, following commonly agreed definitions and nomenclatures. The following associations belong to ISC: CETOP (Europe), CHPSA (China), FPSI (India), JFPA (Japan), NFPA (USA), and TFPA (Taiwan).

The BFPA has been and continues to be very active in CETOP.  Indeed, through its direct involvement CETOP authored a comprehensive set of recommended academic criteria for training in Fluid Power. (CETOP levels one two and three.)  The BFPA CEO attends the CETOP Assembly meetings and sits on the EU Marketing Commission.  BFPA technical consultants continue to be active on the technical commissions and committees.

The Trade Association Forum (TAF):-

The business sectors that individual trade associations represent may be unique but the organisational and policy issues that they face are not.

Since its formation in 1997, the Trade Association Forum has been encouraging the development and sharing of best practice among UK trade associations and promoting the role of effective trade associations to government, industry and the wider public.  The current BFPA CEO is a Board Director of TAF.

Through the Directory the Forum provides comprehensive links to information on UK trade associations and the business sectors they represent.

The Forum provides its members with a range of services and activities designed to assist them in the strategic development and day to day running of their organisations but is not a policy setting body.

Funded by its members, the Forum is an incorporated body operating with guidance from a Board of Directors consisting of trade association representatives. The Forum is based in Waterloo.

Manager:                                                   Linda Cavender : 020 3170 0898

Events & Sponsorship:                           Jocelyn Rudnick: 020 3170 0898

Finance & Benchmarking Officer:       Peter Cload : 020 3170 0898

Benchmarking Officer:                          Richard Fairclough : 020 3170 0898

PNEUROP:-

Pneurop is the European Association of Manufacturers of Compressors, vacuum pumps, pneumatic tools and allied equipment, represented by their national associations.  Pneurop members are national associations representing more than 200 manufacturers in eight EU member states in Switserland and Turkey.  The European market for the sector exceeds twenty billion euros.

Pneurop speaks on behalf of its members in Eu and international forums regarding the harmonisation of technical, normative and legislative developments in the fields of Compressors, Vacuum pumps, pneumatic tools and allied equipment.  It is the preferred EU alliance for the British Compressed Air Society BCAS.

The British Standards Institute (BSI):-

BSI Group, also known in its home market as the British Standards Institution (or BSI), is a multinational business services provider whose principal activity is the production of standards and the supply of standards-related services.

BSI Group was founded as the Engineering Standards Committee in London in 1901.  It subsequently extended its standardization work and became the British Engineering Standards Association in 1918, adopting the name British Standards Institution in 1931 after receiving its Royal Charter in 1929. In 1998 a revision of the Charter enabled the organization to diversify and acquire other businesses, and the trading name was changed to BSI Group.

The Group now operates internationally in 150 countries. The core business remains standards and standards related services, although the majority of the Group’s revenue now comes from management systems assessment and certification work.

BFPA is the external secretariat for 500 of the 7000 standards for which BSI is responsible.  This is a key work stream for the organisation and a clear differentiator amongst other trade associations.

All formal standards are developed with a period of public enquiry and full consultation. They incorporate the views and expertise of a very wide range of interests from consumers, academia, special interest groups, government, business and industry. As a result, standards represent a consensus on current best practice.

Standards are designed for voluntary use and do not impose any regulations. However, laws and regulations may refer to certain standards and make compliance with them compulsory. For example, the physical characteristics and format of credit cards is set out in standard number BS EN ISO/IEC 7810:1996. Adhering to this standard means that the cards can be used worldwide.

As the UK’s National Standards Body, BSI is responsible for producing and publishing British Standards and for representing UK interests in international and European standards organizations such as ISO, IEC, CEN, CENELEC and ETSI.  Formal British Standards are titled BS (for British Standard) XXXX[-P]:YYYY where XXXX is the number of the standard, P is the number of the part of the standard (where the standard is split into multiple parts) and YYYY is the year of publication.

BSI produces standards on a wide range of products, services and processes; from nuts and bolts to sustainability, risk, business continuity management and nanotechnology.

BSI produces British Standards, and, as the UK’s National Standards Body, is also responsible for the UK publication, in English, of international and European standards. BSI is obliged to adopt and publish all European Standards as identical British Standards (prefixed BS EN) and to withdraw pre-existing British Standards that are in conflict. However, it has the option to adopt and publish international standards (prefixed BS ISO or BS IEC).

In response to commercial demands, BSI also produces commissioned standards products such as Publicly Available Specifications, (PAS’s), Private Standards and Business Information Publications. These products are commissioned by individual organizations and trade associations to meet their needs for standardized specifications, guidelines, codes of practice etc. Because they are not subject to the same consultation and consensus requirements as formal standards, the lead time is much shorter.

BSI Group is the world’s largest certification body. It audits and provides certification to companies worldwide who implement management systems standards. BSI also provides a range of training courses regarding implementation and auditing to the requirements of national and international management systems standards.

It is independently accredited and delivers assessments for a wide range of standards and other specifications including:-

• ISO 9001 (Quality),
• ISO 13485 (Quality management systems for medical devices)
• ISO 14001 (Environment),
• ISO 50001 (Energy management systems),
• OHSAS 18001 (Occupational Health and Safety),
• ISO/IEC 27001 (previously BS 7799 for Information Security),
• ISO/IEC 20000 (previously BS 15000 for IT Service Management);
• PAS 99 (Integrated Management),
• BS 25999 (Business Continuity),
• Greenhouse Gas Emissions Verification,
• SA8000 (Social Accountability) and
• Food Safety standards and specifications, including ISO 22000.
• AS9100, AS9110, AS9120 Aerospace
• EU Emissions Trading System (EU ETS)

BSI certifies approximately 60,000 locations in over 124 countries and operates across the UK, CEMEA, Asia Pacific (including Japan and China) and the Americas.

Subsequent to an acquisition in 2006, BSI also offers a web-based integrated management system software service called Entropy Software, which specializes in helping large organizations manage risk and compliance issues.

BSI Group also offers a range of training services on how businesses can implement and audit management systems effectively.

BSI also publishes standards-related books, CD-ROMs, subscription products and web-based solutions as well as providing training on standards-related issues.

Within Testing Services, BSI’s best known product in the UK is the Kitemark, a registered certification mark first used in 1903. The Kitemark – which is recognized by 82% of UK adults – signifies products or services which have been assessed and tested as meeting the requirements of the related specification or standard within a Kitemark scheme.

BSI also conducts testing of products for a wide range of certifications, including for CE marking. CE marking must be applied to a wide range of products intended for sale in the European Economic Area. Frequently manufacturers or importers need a third-party certification of their product from an accredited or ‘Notified’ body. BSI holds Notified Body status for 15 EU Directives, including construction products, marine equipment, pressurized equipment and personal protective equipment.

BSI also conducts testing for manufacturers developing new products and has facilities to test across a wide range of sectors, including construction, fire safety, electrical and electronic and engineering products.

Within Healthcare, BSI provides regulatory and quality management reviews, and product certification for medical device manufacturers in Europe, the United States, Australia, Japan, Taiwan, Canada and China. It is the market leader in the USA, the world’s biggest healthcare market

The Government Department for Business Innovation & Skills (BIS):-

The Department for Business, Innovation & Skills (BIS) is a ministerial department of the United Kingdom Government created on 5 June 2009 by the merger of the Department for Innovation, Universities and Skills (DIUS) and the Department for Business, Enterprise and Regulatory Reform (BERR).

Of all of the Government departments it is the one that is most relevant to the business of the BFPA along with its associated export agency UKTI. (See below).

The department is responsible for UK Government policy in the following areas:-

• business regulation and support
• company law
• competition
• consumer affairs
• corporate governance
• employment relations
• export licensing
• further education
• higher education
• innovation
• insolvency
• intellectual property
• outer space
• postal affairs
• regional and local economic development
• science and research
• skills
• trade
• training

It is the first ‘port of call’ for all items relating to business and provides specific services relating to:-

1. General guidance for business
2. Find guidance on jobs and pensions
3. Learning about export control
4. Identifying business finance and grants
5. Export support

Significantly BIS also houses the Better Regulation Executive (BRE) who provide support for industry engaging with Government on poor or inappropriate regulation. The current BFPA CEO was a part of the BRE during his secondment to the Cabinet Office and therefore has a selection of good contacts within the department.

Key staff appointments following the May 2015 Election were as follows:-

• Secretary of State for Business, Innovation and Skills, and President of the Board of Trade – Rt Hon Sajid Javid MP
• Minister of State (Trade and Investment) – Rt Hon Francis Maude (jointly with the Foreign and Commonwealth Office)
• Minister of State – Anna Soubry MP**
• Minister of State – Nick Boles MP (jointly with the Department for Education)
• Minister of State – Ed Vaizey MP (jointly with the Department for Culture, Media and Sport)
• Minister of State – Jo Johnson MP
• Parliamentary Under Secretary of State – George Freeman MP (jointly with the Department of Health)
• Parliamentary Under Secretary of State – Baroness Neville-Rolfe DBE (jointly with the Department for Culture, Media and Sport)

UK Trade & Investment (UKTI):-

UKTI was formed in May 1999 as British Trade International, comprising two parts: Trade Partners UK (for export) and Invest UK (for inward investment – FDI). In October 2003, the former department name and two inner departments merged and became UK Trade & Investment to simplify the outward recognition of the organisation, and possibly to reduce confusion with the two departments. UKTI reports jointly to the Foreign Office and the Department for Business, Innovation and Skills.

Aims:-
To support its aim to “enhance the competitiveness of companies in Britain through overseas trade and investments; and attract a continuing high level of quality foreign direct investment”.

UK Trade & Investment offers services to British businesses wanting to gain access to global markets through export, and foreign based firms wanting to invest in the UK as a base to expand globally. Under agreement Trade & Investment organisations for Scotland, Wales and Northern Ireland respectively Scottish Development International, Wales Government, Invest Northern Ireland are able to access UKTI services and provide support for those companies who are located in their individual countries.

Structure:-

UK Trade & Investment is an international organisation with headquarters in London and Glasgow in Scotland. Across its network UK Trade & Investment employs around 2,400 staff and advisers, including overseas in British Embassies, High Commissions, Consulates and trade offices, and regional offices in the nine English regions^.
The delivery of many UKTI regional services within the United Kingdom is contracted out to other organisations. Traditionally this was a role played by the local Chamber of Commerce, but more recently contracts have been awarded to “bodies which are closer to government.” The British Chambers of Commerce (BCC) argued that the effect of this change was to “take trade services from a single roof which employers knew and understood [and] spread them among many different organisations.” In Devon, Cornwall and Somerset, UKTI regional services are now delivered by Serco, which also provides services to local government and the private sector in the following areas: home affairs, defence, science, nuclear, health, education, welfare to work, and IT.  In China, the China Britain Business Council, another private body, is the provider.

Business and University leaders work with UKTI as “Business Ambassadors”. They promote the UK internationally and highlight trade and investment opportunities. They focus on helping small and medium-sized enterprises (SMEs), which sometimes face greater barriers to accessing global markets than larger businesses.
UK Trade & Investment brings together the work of the Foreign & Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS). It draws staff and associated administration funding from both parent departments, but has its own stream of programme funding, for which the Chief Executive is directly responsible as accounting officer. The UK Special Representative for International Trade and Investment works as part of UKTI to promote British business and produce.

UK Trade & Investment has Public Private Partnership agreements with the Federation of International Trade Associations under which they contribute market research and other reports on GlobalTrade.net.

UK Trade & Investment has an arms trade branch called UKTI DSO (UK Trade & Investment Defence & Security Organisation).

An important activity of UKTI for BFPA is the fact that it runs the Trade Access Program (TAP) which provides funding through Accredited Trade Organisations (ATO’s), for UK companies wishing to undertake business in overseas territories.  The main contacts for the BFPA are in Glasgow and are Ron Archibold and Janet Tingle.  The current BFPA CEO has close relations with both parties.  The BFPA is not currently an ATO.  There is a need to establish whether or not there is sufficient demand amongst the membership to merit seeking ATO status.  To do so would also facilitate a small revenue generating facility through management fees associated with taking members overseas.

Local Government:-

UK Local government is subject to extensive lobbying, which is reasonable given the greater importance of the local public sector in large welfare states. Most of the scholarly attention has understandably been focused on lobbying at the national level. Contrary to common misconceptions, generally local representatives seeking re-election are contacted more frequently by interest groups.  Interest groups target their lobbying activities toward politicians who are members of the relevant council committees, and they exert stronger pressure on members of the executive board and active representatives who perceive themselves as influential. Interest groups tend to be more active in the richer local governments. The demands of the residential population also impact weakly on lobbying efforts.  Recent Government efforts to decentralize a number of initiatives e.g. The local Enterprise Partnerships (LEP’s) that replaced the Regional Development Agencies (RDA’s), and spread the cost of policy implementation have meant that there are a number of localized initiatives and opportunities that merit BFPA attention and by implication, that of its members.  However, only the very largest of trade associations can afford the overhead of focusing on local issues on behalf of an individual or small group of members.  They can however, provide guidance to members on how they might undertake their own local initiatives.  A topical example of this is the Government Business Growth Accelerator program which is implemented at a local level through approved parties operating under a policy framework dictated by central government.  The BFPA therefore needs to remain aware of locally implemented initiatives and advise where possible, members in taking their own action should they wish to allocate the necessary resources.

Can we seriously influence Brussels?  The BFPA position:-

It is widely recognized that a large proportion of UK legislation is dictated by EU law.  However, determining the exact amount has eluded many pundits.  Sometimes a figure of 70% is used — including in February 2014 by Viviane Reding, the Vice-President of the European Commission — but this is actually the percentage of EU laws that the European Parliament (elected representatives of each EU country) and the European Council (representatives of the governments of each EU country) have had an equal say on.   The rest are either decided solely by the Council, or with Parliament giving the Council consent to them being passed. In other words, it’s the percentage of EU law that the UK-elected politicians to the European Parliament have as much say on as our national government!  Either way, it is safe to say that any trade association meeting its member obligations has a duty to try and engage with Brussels.  The challenge arises in that lobbying the EU is a very resource intensive and expensive process.  The situation is further complicated in that not only is the structure of Brussels complex but it only allows lobbying via a number of recognised bodies and organisations.  Each of these bodies tends to specialise in a given group of sectors.  They also carry what is usually an expensive membership subscription. The BFPA, through its membership of EAMA; (see above), is a member of ORGALIME, an EU lobbying organisation with a focus upon the Engineering sector.  EAMA members still find staying abreast of the activities of ORGALIME a challenge but for a small Trade Association such as the BFPA it is the only realistic way of having (a) any knowledge of what is coming down the EU regulatory pipeline and (b) having any influence on it.    The current BFPA CEO is an EAMA Board member and as part of the 2015 strategy will continue to engage with ORGALIME as much as is realistically possible.  However, it will not be a major thrust in the activities of the BFPA in the short term and will act primarily as a source of information on the activities of Brussels and the extent to which they will impact upon the membership.  There is also a close connection between the Technical and Standards committees managed by the BFPA and the relevant EU departments in Brussels.  These activities also overlap with CETOP – see below under Strategic Partners.

A View of the primary political influences in the BFPA Market by the BFPA CEO – Chris Buxton:-

1) Renewed Government focus upon manufacturing & specifically engineering and other Science Technology, Engineering & Mathematics (STEM) subjects.

Since the ‘fall from grace’ of the finance sector in the 2009 crash the UK Government has recognised that a successful economy depends upon trade and manufacturing. This has given impetus to a tranche of new initiatives aimed at supporting the Engineering and manufacturing sector at all stages in the supply chain. Much of this focus has tended to be biased towards the Aerospace and automotive sectors where Government believes it can realise the best returns for what are limited resources but this nevertheless has a positive impact on all suppliers to these sectors and related areas. In 2014 they published an industrial strategy; (www.gov.uk/government/uploads/system/uploads/attachment_data/file/306854/bis-14-707-industrial-strategy-progress-report.pdf) which developed specific strategies for what have been ten sectors; specifically:-

1. Aerospace
2. Agricultural Technologies
3. Automotive
4. Construction
5. Information Economy
6. International Education
7. Life Sciences
8. Nuclear
9. Offshore Wind
10. Oil and Gas These sectors have been underpinned by the identification of five cross-cutting themes:-

1. Technology
2. Skills
3. Access to Finance
4. Procurement
5. ‘Other issues of cross-sectoral significance ‘

The result is a two dimensional matrix strategy in which each of the primary sectors has been given ministerial sponsorship and a number of specific initiatives to further their cause. Recognising that many sectors (including that of the BFPA) do not naturally fall into the primary industries identified in the government strategy, BIS has agreed to provide support on a case by case basis for other sectors willing to undertake their own initiatives and ‘dove-tail’ their strategies into that of the Government. BFPA in conjunction with EAMA has undertaken one such initiative for the Engineering and machinery supply sector. This initiative is still in the early stages of development and the BFPA CEO sits on the steering group managing it.

2) Access to funding

For some years access to funding for companies in the manufacturing sector has been a major issue – especially in the SME sector where risk of non-repayment of loans is highest. Consequently much work has been undertaken by organisations such as the BFPA in lobbying government to put the finance sector and banks under pressure to reduce or remove what were widely accepted to be disproportionate terms of business. One consequence of this inflexibility has been that many companies have found alternative means of funding their activities and with the return to healthy economic growth many now have strong business pipelines and no longer require the kind of support previously required from their banks. In essence, the tables have turned somewhat and banks are now seeking to repair their reputations as unco-operative and parasitic institutions and become much more business friendly. Whilst we shall never see a return to the old personalised banking of the sixties and seventies many banks, notably Lloyds have made significant progress in this aspiration and with the support of government there are now a number of new sources of finance available from both the banks and a number of government departments. E.g.

1. The Advanced Manufacturing Supply Chain Initiative (AMSCI)
2. The new Regional Growth Fund initiative (RGF)
3. The Growth Accelerator Programme
4. The R&D Tax Credit system (hmrc.gov.uk/ct/forms-rates/claims/randd.htm)
5. Funding Circle (www.fundingcircle.com )
6. The new business bankwww.gov.uk/government/uploads/system/uploads/attachment_data/file/203148/bis-13-734-building-the-business-bank-strategy-march-2013.pdf                     Business banking insight website
7. Lloyds SME engagement strategy (Business Finance Guide now available)
8. whilst the Governments ‘Business is Great’ campaign and website now offer a selection of related services at:-www.greatbusiness.gov.uk/
9. Another very good source of information relating to access to funding is now available at:www.gov.uk/government/uploads-sme-access-to-finance-measures
   

3) Prompt / late payments:-Like access to funding, late payment regimes and disproportionate terms of business, particularly amongst tier one suppliers in the manufacturing and engineering supply sector have long been the catalyst for complaints and lobbying initiatives. The Government recently undertook a public consultation on the subject and the CBI is developing a policy document on the subject as part of a new lobbying initiative. BFPA contributed to the consultation exercise and are involved in the associated CBI workshop. The problem is not easily addressed as any robust action puts the customer relationship at risk and SME’s, particularly those at the lower end of the supply chain, are loath to be too stubborn or proactive. Nevertheless, the BFPA continues to work on this topic and Government interest in the subject can only help. Threats to instigate a ‘name and shame’ policy would appear to be having some effect but there is still a long way to go and government are afraid of upsetting the larger companies so close to an impending election. Perhaps one of the more encouraging developments was the publication of the Governments new Small Business, Enterprise and Employment Bill in June 2014, which includes a number of clauses relating to companies having to publish their payment practices whilst smaller companies now have greater rights to invalidate contractual terms that are disproportionately restrictive or quite simply, demonstrably unfair.

4) Skills shortages

With improvements in access to finance, the UK skills shortages in the engineering sector have long since been the primary obstacle to business growth. The statistics are well known:- 80% manufacturers are experiencing recruitment difficulties and two-thirds of those say this is because candidates lack technical skills:

– 146,200 job vacancies (22%) in 2013 were unfilled because of inadequate skills, compared with 91,400 (16%) two years earlier. (UKCES SURVEY)
– 100,000 STEM graduates are needed a year just to maintain the status quo (The Royal Academy of Engineering)
– In the UK some 23,000 engineers are graduating every year. (But India is producing eight times as    many, and China 20 times as many.)
– 830,000 graduate-level STEM experts and 450,000 technicians will be needed by 2020 Government is seeking to address this problem with a number of new initiatives:-
– Instigation of the UK Commission for Employment & Skills
– Established University Technical Colleges (UTC’s) www.utcolleges.org – New £30M fund to secure supply of engineers and boost number of women in sector
– New support for apprentices (Trail blazer initiative)
– Raft of new NGO initiatives such as Engineering UK
– The Talent Retention Scheme. (TRS) This list is not exhaustive and the plethora of apparently un-coordinated initiatives in this area, many spawned from well-meaning, semi-private organisations frustrated by government inaction does little to provide clarity.

5) Export

Inward investment into the UK economy created or secured more than 112,000 jobs in 2011 to 2012 according to UKTI’s inward investment report for 2012 to 2013. The government wants to double the UK’s exports to £1 trillion by 2020 and attract more inward investment in UK infrastructure projects. A challenging target in language!

They claim that; “We are determined to remain one of the top countries for ease of doing business, by providing more support for British businesses to export their goods and services, and reducing corporation tax to competitive levels.” A worthy aspiration.

One of the steps that they have taken includes the establishment of a government department called UK Export Finance.

UK Export Finance supports exports through a range of products and services. These include guarantees to banks for loans used to purchase UK exports and insurance against non-payment. Its remit is to complement and not compete with the export insurance and finance available from the private sector.

In 2011 UK Export Finance broadened its business domain and product range to provide support for exports sold on short terms of payment. It offers a Bond Support Scheme and an Export Working Capital Scheme and, to help smaller exporters access the right support, it operates a network of regional Export Finance Advisers.

UK Trade & Investment (UKTI) offers services to businesses who are looking to or already exporting overseas. They also help overseas companies who want set up and invest in the UK.

International trade advisers are able to provide advice on a range of UKTI services to UK companies, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, e-commerce, export training and market research. They are located in over 40 local offices around the country. UKTI also has sector specialists who can provide support to specific industries. Companies can book a face to face meeting with a trade adviser.

UKTI trade teams located in embassies, high commissions and consulates work with companies to identify overseas opportunities or the right contacts and potential partners in a specific country though the Overseas Market Introduction Service (OMIS) although much of the data in the OMIS reports is derived from the sector Trade Associations and they are not inexpensive.

UKTI’s Passport to Export is an assessment and skills-based programme that gives new and inexperienced exporters the training, planning and ongoing support needed to succeed overseas. Passport to Export also helps companies to research and visit selected markets.

The Tradeshow Access Programme (TAP) provides grants to help businesses who want to take part in overseas trade exhibitions and increase their knowledge about markets.

Experienced exporters are able to apply for the UKTI Gateway to Global Growth scheme which offers a 12 month programme of specific support focused on their needs.

UKTI’s Export Communications Review gives companies advice on language and cultural issues to improve their competitiveness in export markets.

UK companies can get free independent advice on how to carry out marketing research through UKTI’s Export Marketing Research Scheme. It can help them decide if they should export to a new market and how best to deliver products and services. It can also provide financial support for a marketing research project in certain circumstances.

UKTI established the UK Advisory Network in 2007 so government and the private sector could work closer together on giving help to investors setting up in the UK. The network gives companies easier access to private sector expertise.

The government is also simplifying and reducing corporation tax to encourage inward investment. The current rate of corporation tax is 21% making it the fourth lowest in the G20. The government is lowering the rate of corporation tax to 20% in 2015 which will be the joint lowest in the G20

Through their UK networks overseas, the Foreign and Commonwealth Office provides information to UK businesses to help guard against risk when operating overseas. They also offer timely political and economic updates which highlight key factors in emerging markets and help businesses identify and pursue new opportunities.

The Foreign and Commonwealth Office is establishing a new government-owned company, the British Inter-governmental Services Authority (BISA), to help the UK benefit from government to government contracts with other countries.

BISA has been specifically set up to manage these contracts and help facilitate and deliver opportunities for British companies across the entire supply chain, from major prime contractors to SMEs. It is not yet trading but in 2014 it is expected to grow into a fully operational company, with its own chief executive and board. More information can be derived from Jolyon Welsh, Head of Government to Government Contracting, FCO, by email at jolyon.welsh@fco.gov.uk

The FCO’s Business Charter, published in 2011, shows how Foreign & Commonwealth Office (FCO) resources can meet the needs of British business. It is part of the FCO’s work to create lasting prosperity for the UK, explaining the specific contribution that the FCO makes to support business across the world.

UKTI has an ongoing programme of research that looks into the effect of exporting on UK companies across the economy.

UKTI’s publication ‘Bringing home the benefits: how to grow through exporting’ found that for many UK companies the decision to grow through exporting has been profitable. Those companies who venture into new export markets tend to be rewarded both directly through boosted turnover, and indirectly through improved levels of efficiency, innovation and credibility. Early analysis of BFPA member companies suggests that the full export potential in our sector is not being fully realised and there would be merit in exploring this issue further.

BFPA Consultant members are all skilled practitioners in their various fields of expertise. All BFPA Consultants are completely independent of any commercial enterprise and as such will give unbiased opinions and advice.

Please mention the British Fluid Power Association when contacting consultants.

or alternatively