Driving the future of Northern Ireland’s manufacturing powerhouses
If something is a cliché, does that automatically make it true? We’ve all heard Northern Ireland’s manufacturers described as the ‘backbone of our economy’. In this case, the phrase is absolutely true.We might not produce the same goods that we did a century ago, or even a decade ago, but Northern Ireland’s manufacturing sector remains a powerhouse of innovation, ambition and local success and its future is one to champion.The most recent data produced by the Northern Ireland Statistics and Research Agency showed the industry was, by far, the main catalyst of growth in the overall Index of Production, with output rising 3.8% last year alone. The sector accounts for around a third of all local business turnover, illustrating its sheer importance to the success of this region.Modern manufacturing in Northern Ireland is about innovation and investment, but it’s also about succession. For many of our best-known manufacturers, they are either family-run or founder-led, meaning they must align their business strategy with long-term ownership plans.Of course, for the majority, this isn’t left to chance, with most savvy business leaders integrating succession planning into their wider strategies. A proactive succession plan, whether that means passing ownership to the next generation, preparing for a sale or exploring other deals, safeguards jobs, protects legacy and provides a level of certainty in times of global economic challenges and rising costs.But when is the right time to initiate a plan for change? There is no single answer, however the strongest businesses are usually those planning furthest ahead.Early preparation is key and ideally, owners should start around three to five years ahead of their planned exit; setting strategic goals, optimising operations and engaging advisers to groom the business to maximise value.This ‘sale-readiness’ approach positions the business in a stronger position, with robust financials, a clear growth strategy and greater appeal to potential buyers. Crucially, it also helps protect legacy, rewards teams and lays the foundations for future success.Succession planning isn’t just about preparing for change; it is about securing the future of one of Northern Ireland’s greatest economic strengths. By planning ahead now, businesses can turn succession into an opportunity, ensuring our factories continue to buzz for generations to come, contributing to the economy and creating new jobs.Pam Gillies. (DARREN KIDD) Pam Gillies is partner and head of strategic planning and business advisory, HNH Partners.
