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Supply Chain

A very large and extensive supply chain supports the Process Industry in North East England. Encompassing diverse activities from the engineers that design and maintain the plants, through the marketing and public relations companies that drive organisations forward, to the lawyers that protect them - the supply chain truly underpins the region’s process sector.

The North East Process Industry Cluster (NEPIC), who support and represent the sector, believe this supply chain is vital for the growth of the sector. As a result of the recent recession, a clear shift towards new industry and the creation of a low carbon future has emerged.

The Tees Valley Investment Programme (TVIP), which supports the regions industrial transition, is further testament to this and emphasises the regions commitment in this area. In a new low carbon economy, the process industry supply chain will become even more complex and will exist in a landscape of evolving low carbon technologies.

The key strengths of North East supply chain companies is their long term competency and knowledge, combined with a real understanding of the chemical industry’s needs.

As a true supply chain cluster, NEPIC actively engages with the entire value chain in order to help drive the regional economy, and more recently has seen an increased desire from the major manufacturing companies within the region to spend more of their budgets locally.

In this scenario the value of information becomes even more critical. The ability to acquire it, process and contextualise the information and then to apply it, will determine an individual company’s chance of being successful and enhancing their position within the supply chain. The principle characteristic of the sector’s supply chain is predominately SME’s.

The NEPIC SME Thrust Group, which supports this group through a number of activities, are currently preparing a portfolio of approaches to assist SME’s in working with these anticipated changes, that will ultimately arise from the diversification of the process sector towards a low carbon and advanced manufacturing economy.

The aim of the group is to help companies be in a strong position and to prosper as the economy emerges from the recession. NEPIC are establishing within their offices a team of extended support organisations, specifically focusing on the process sector, including Business Enterprise North East and UK Trade and Investment.

NEPIC and BE-NE have recently designed a partnership agreement which aims to combine efforts and drive the growth of gross value added within the process sector. This approach will enable SME’s to approach a single point of contact and access this ‘resource-hub’ at ease.

NEPIC is also working towards the development of a portal (due to go live in April 2011), which will integrate with NEPIC’s exceptional existing web presence, with larger companies agreeing to make commercial tenders available through the portal, offering the region’s supply chain greater opportunities.

Open collaboration is of high importance for the future prosperity of the region and sector, therefore the portal will also offer shared secure workspace that will enable companies to work collaboratively to secure new business.

Furthermore, NEPIC continues to work with partner UKTI in expanding its links with key international markets such as China, India and Brazil, through market visits and exhibitions.

James Robson, of local SME Exwold Technology Limited, who have taken advantage of NEPIC’s international activities commented:

“Exhibiting in conjunction with NEPIC and UKTI gives us a low cost route to exhibiting which is always a benefit, but more importantly, foot-fall at these exhibition stands increases markedly due to their being a number of industry-relevant companies in one place. It also allows for valuable networking with the other exhibiting companies to gain wider market knowledge.”

Elsewhere, NEPIC had identified the potential of Innovation Vouchers for UK Industry during its collaboration with other European clusters via the ChemSME Project. Innovation vouchers provide small to medium sized business in the region with financial support to engage with the region’s universities and other academic institutes. The vouchers, which will help business grow and develop, are available up to the value of £3000 and can be redeemed to fund the cost of this practical knowledge and expertise.