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Key representatives from the Welsh Electronics Forum and Institution of Electrical Engineers (IEE) this week came out in support of the national call for action by the DTI's Electronics Innovation and Growth Team (EIGT) to ensure the technology industry's success beyond 2015.
The recommendations, which were made by EIGT Chair and VP of Intellect David Kynaston at a high-profile event in Cardiff, closely follow the launch of the forum's technology industry strategy report by Minister for Economic Development, Andrew Davies.
The joint public and private sector report 'Towards a technology industry strategy for Wales' highlights the challenges facing the technology industry going forward as well as the need to encourage the growth and development of the industry via a focused, collaborative approach.
Said Dr Drew Nelson, Chairman of the Welsh Electronics Forum: 'Despite the number of challenges facing the industry, the trend remains one of high growth'.
'Wales has a number of globally significant technology companies, employing around 30,000 people and it's great to see Wales playing an active role in ensuring the future of the technology industry, not only in the UK, but globally'.
The EIGT report 'Electronics 2015 - Making a visible difference' comes in response to the various challenges which will face the industry over the next 10 years including EU legislation, outsourcing and effects of globalisation and aims to rejuvenate the industry and put key skills back into the workplace.
The report makes a number of key recommendations including the need for Government and business to address the shortage of skilled people joining the industry and the decline in young people studying science and engineering.
Addressing the more than 90 technology leaders in Wales, Kynaston called for a refocusing on the issues which will ensure the industry's future success and allow the UK to compete favourably on the world stage.
'The technology industry has seen a significant paradigm shift over the past five years'.
'Over the period 1999-2003, we've lost more than 100,000 technology jobs in the UK and more compellingly; 17% of our design engineers and 9% of design establishments'.
'In addition to the realities of commoditisation and globalisation, our strategy beyond 2015 will have to take into account a highly fragmented, largely invisible industry which doesn't collaborate as it should and fails to punch its weight on those things that will ensure its future'.
'We now face a stark choice - if we continue as we are, the future for the technology industry will be as a bit player on a world stage'.
Going forward, Kynaston argues that although the number of technology manufacturing businesses is a sizeable 10,000 companies, the average numbers employed have decreased dramatically.
'With the average business now employing around 49 people, we have truly become a nation of small shopkeepers'.
'However, this may well be our strength going forward'.
Although technology makes up around 30% of the cost of goods in most sectors, the image of the technology industry remains poor according to Kynaston.
'Technology forms the major propellant for design and innovation in most sectors, yet the technology industry remains largely invisible'.
'Furthermore, we don't often get together to protect our common interests and promote the future'.
Reflecting on the future of the technology industry, Kynaston added that any strategy adopted by the UK industry would not only have to be better than the last one, but would have to be competitive and allow the industry to compete globally.
'We have to start looking at ways in which we can cooperate better, improve our leadership skills and set up groups which will enable us to deal with difficult EU legislation early on'.
'However, what we are asking Government to do is somewhat different to that requested by a recent French report - we are not asking for more capital projects to be made available - what we are asking is for Government to provide the right environment and tax regime and then allow industry to get on with its job'.
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