Black Country leads efforts to support UK manufacturing through the energy cost crisis

The West Midlands Industrial Energy Taskforce, Black Country Local Enterprise Partnership (LEP) and Andy Street, Mayor of the West Midlands have brought UK manufacturing and energy sectors together to discuss on-going energy cost crisis for business.

Although government has extended support for household energy bills for a further three months, support for industry is much less generous, and recent surveys by the Black Country Chamber of Commerce suggest around 14% of Black Country businesses are now trapped in excessive energy contracts that put the viability of their business at risk.

Many face a cliff edge when government support for commercial electricity bills is cut by 94% in April. Across the wider West Midlands, up to 70,000 jobs are threatened.

The event in West Bromwich included a Mayoral summit on emergency short term actions, led by Andy Street, and the launch of a national Centre for Manufacturing Transition led by Repowering the Black Country on behalf of the Black Country LEP.

The national Centre for Manufacturing Transition will provide a permanent voice for Black Country manufacturers in national energy and industrial policy and aim to protect and grow skilled jobs in manufacturing across the Black Country and wider UK. The Centre will also provide ongoing support to businesses in energy efficiency and help them to identify permanent measures to reduce energy costs.

Andy Street, Mayor of the West Midlands, said: “The Government has moved decisively and effectively to help families with their domestic energy use, but it’s clear that much more needs to be done to support businesses.

“I know that many industries across the West Midlands are under immense pressure because of the current energy market and businesses are wondering how they’re going to survive - not least those who had to sign contracts last autumn at the height of the global energy crisis.

“That’s why I wanted to convene this summit and why it was so important today to draw the energy sector and businesses together to discuss what can be done.

“The conversation was challenging but productive, and it’s mission critical we now get on and make our case to Government - as well as continuing the constructive dialogue with energy suppliers.”

Matthew Rhodes, chair of the West Midlands Industrial Energy Taskforce and the driving force behind these initiatives, said: “Manufacturing and energy-dependent businesses are at the heart of our regional economy and we are facing a slow-motion car crash as the impact of last year’s volatility in energy prices feeds through to companies.

“National government seems to have taken its eye off the ball, and we need to stand up and make our voices heard at this critical time.

“I’m delighted that the Mayor and directors of the biggest UK energy companies are here today to listen to Black Country and West Midlands businesses and hear first hand about the impact this crisis is having on their businesses and regional jobs. It’s to their credit that they are taking this issue so seriously and I’m optimistic we’ll come up with some short-term solutions together.

“The Mayor in particular is fully behind the launch of the new Centre for Manufacturing Transition, and we’re looking forward to continuing to work with him and the Combined Authority, as well as with national government, to continue to give our manufacturing companies the supportive policy environment they need to compete globally in an increasingly challenging world.”

Repowering the Black Country is a programme of initiatives supporting Black Country businesses to take advantage of global clean growth opportunities and to make the transition to a net zero industrial future. The project will initially develop four zero carbon industrial hubs in the Black Country. Within the next 10 years, we aim to reduce industrial carbon emissions by around 1.3M tCO2. Repowering the Black Country is one of seven industrial cluster decarbonisation projects funded by the Department of Energy Security and Net Zero and UKRI.

The project is about providing cost-efficient energy infrastructure across the Black Country; helping companies benefit from new supply chain opportunities in the circular economy; and supporting resource efficiency initiatives in manufacturing operations.   

The West Midlands Industrial Energy Taskforce was established to identify and propose solutions to the energy crisis for West Midlands manufacturing. It has a work programme between now and June 2023.

Led by the West Midlands Combined Authority and Repowering the Black Country the taskforce members include MAKE UK, William King, The Coventry and Warwickshire Chamber of Commerce, Thomas Dudley, Westley Group, Jaguar Land Rover, Mondelēz International and Repowering the Black Country.