Warning over how lockdown could affect Black Country automotive industry
A business leader has warned the Black Country's automotive and aerospace manufacturing sectors could be hardest hit from a prolonged lockdown.
Ninder Johal, board member at the Black Country Local Enterprise Partnership, says this is down to the "big supply chains involved" in the region's manufacturing processes.
Mr Johal, born in Birmingham, believes the Government faces a delicate balancing act over easing lockdown restrictions for businesses because "the health and safety of employees is a top priority".
Asked how the Black Country's economy has been impacted by coronavirus, Mr Johal told the Express & Star: "We have two major sectors, the automotive sector and the aerospace sector. There are big supply chains involved. The quicker we get back operating, the better. These businesses will be greatly impacted if the lockdown is prolonged. These two particular sectors are part of our DNA in the Black Country."
But he added: "Our road to recovery will be determined by how quick we get our industries going. But health and safety has to come first. Part of it comes down to how quick industries can put in place safety measures."
Prime Minister Boris Johnson says people should work from home where possible. However not all workers can work from home like those in the manufacturing sector, where many roles are hands-on.
A lot of firms have chosen to furlough staff due to financial impacts from the lockdown over coronavirus. The Government has extended the scheme until October.
Another vulnerable area is the hospitality sector, said Mr Johal. The Government says this industry - which includes pubs, restaurants and hotels - cannot open until early July at the earliest.
"We don't know how long the hospitality sector will be off for," said Mr Johal. "It will be interesting to see how the Government treats that sector. They will be at the back of the queue for help."
Other problems facing businesses include delays in receiving grants - effectively financial aids - from councils on behalf of the Government. Mr Johal blamed administration issues. He did not name any examples. But Sandwell Council has one of the worst records in the country, of local businesses, for paying out small business grants.
He added: "Due to the urgency at which the policies came out, we didn't have the resources to mobilise and deliver projects.
"Some of the banks were given 24 to 48 hours to do it [put in place the Government grant scheme]. It was a mammoth task."
Infrastructure
Asked how the Government could help the region's economy going forward, Mr Johal said: "What the Government needs to understand is how we work as a region.
"Manufacturing is one of our main sectors of industry. We need funding to develop manufacturing skills, digital skills like IT and funding to support infrastructure and education.
"If we have got a trained workforce, that will mitigate against any potential job losses and high unemployment. If we get people trained up, we can get them back in the work place.
"There's going to be a recession and we need to be prepared for it.
"The skills shortage hasn't been a short term problem but a long term problem. We need to find a long term solution."
Mr Johal is an entrepreneur. He is the owner of Nachural Group, which is made up of number of businesses including a recording company and an events company. The latter, Nachural Events, is based in Wednesbury.
He is a past president of the Black Country Chamber of Commerce and is a trustee Albion Foundation, the charitable arm of West Bromwich Albion Football Club.
He is also a governor at the University of Wolverhampton and vice-chairman at Sandwell College.
