HS2

Supply chain raises concerns of Industrial Strategy delay

Senior members of the supply chain have raised concerns this week at Railtex that there could be delays to the Industrial Strategy, and that changing government priorities could force the important issue down the political agenda.

Answering an audience question at a panel session, Gordon Wakeford, chair of the Rail Supply Group (RSG), said he believes the general election “will delay things, for a while, but depending on who gets in you might see an improve impetus”.

He added that despite the industry coming together in its response to the strategy, once the election was called for 8 June “you wonder if it is all going to change”.

“The collective thinking is that unless we have a major change of government, which could happen, but let’s assume not, then we think it is certainly going to continue,” said Wakeford, adding that civil servants are still talking about an autumn response from the government on the strategy.

However, Alex Burrows, marketing and strategy director at Alstom, was not as confident about the continued impetus.

“I have several concerns,” he said. “One is that priorities can change. The May government came in last year and the Industrial Strategy was established. That could change because of the election. Also, the pace of Brexit negotiations may change things, our priorities may change in government and the Industrial Strategy may not be a top priority – we know that Whitehall is overworked.”

Burrows added that he has a “nervousness” that automotive and aerospace are more effective than the rail industry at “getting their houses in order, and being more agile and nimble in responding to these changing situations as they emerge”.

But David Clarke, technical director at the Railway Industry Association, who had called for a move away from the ‘famine or feast’ situation facing the supply chain, countered the concerns by saying that, with the RSG, the “supply chain is engaged with government in a way that it has not been before, and it is really positive”.

“The other sectors we keep comparing ourselves to have been at this for years,” added Clarke. “They are more than five years ahead of us in their maturity and engagement with government; we shouldn’t beat ourselves up that we are not in the same place as they are.”

What the rail supply chain is happily doing, he argued, is learning from the experience of automotive and aerospace and adopting them to fit the sector.

Carillion’s Bill Free added that an important point is that the “door is open a chink”, as the government have said they want the Industrial Strategy.

“We have our foot in the door, and on no account should we take our foot out of the door because it is starting to open,” he stated. “If we back off and say, ‘let’s wait and see what happens’ we’ll wait and nothing will happen – we need to keep on pushing!”

Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.