This week the British Chambers of Commerce (BCC) published their quarterly EU Barometer, which showed that businesses strongly want to remain in the EU. Almost two-thirds (61.4%) said they wanted to remain. It's a great shame that the poll still managed to produce some negative headlines, some of which I would wager are politically driven by those who really want Britain to leave the EU or just don't care enough about small- and medium-sized (SME) businesses like mine to report the facts accurately.
My company, Rowan Precision Ltd, is in the heart of the industrial West Midlands, and we have been manufacturing precision turned parts for over 25 years, for sectors including aerospace, medical, defence, lighting, automotive, scientific instrumentation, electronics and telecommunications, with15% of our products going to EU customers.
We are part of a regional EU supply chain with Germany, France, Spain and Italy for the global export market, which is typical of the way UK SME manufacturers trade. I like to think firms like mine represent the backbone of the British manufacturing and export economy.
Expansion of the EU single market has opened up a lot more doors for us, providing us with many more opportunities to export. Without the single market, my company simply wouldn't have the same work turnover as we presently do. That's why, when I hear it said that small businesses can't afford Britain to carry on in the EU, I think to myself – hold on, we can't afford not to be in the EU. And I don't have to pay for large teams of lawyers, compliance officers or Brussels-based lobbyists to export well-made products to the EU.
The BCC poll confirms that most businesses (54%) think withdrawal from the EU would be bad for Britain. Let me go further. It would be a suicidal concept to even contemplate exiting the EU. The opportunity it brings for export and trade is absolutely second to none. Micro, small and medium enterprises are the lifeblood of the UK economy; exporting businesses are the next generation of wealth generators – how will this be achieved if we surrender access to the single market?
The single market has created a more level playing field for small businesses. Added to that, enlargement of the EU has brought British SMEs into contact with a wider pool of potential customers and provided companies with skilled workers who can complement and enhance our workforces.
Limited or restricted access to the EU's single market would be an impediment to growth, job creation and innovation for the UK economy. Businesses would be stung if access to Europe's common market of 500 million customers – our biggest market and destination to 50% of British exports – dried up. On top of this, completion of the single market in the digital, services, energy and transport sectors would bring further tangible economic benefits to British businesses.
But the real excitement for West Midlands manufacturing SMEs is the EU-US trade deal – the Transatlantic Trade and Investment Partnership [TTIP] – that is currently being negotiated. The US is already the most important third country market for European SMEs and the deal will reduce paperwork and administrative costs.
The EU and US represent over half the global economy and 30% of global trade, and any deal will create jobs on both sides of the Atlantic and make our countries more prosperous. An independent study by the London-based Centre for Economic Policy Research (CEPR) suggests the EU's economy could benefit by €119bn (£104bn) a year – equivalent to €545 for an average EU household. That's £477 per household. The US's economy would be €95bn a year better off.
That's why in September, as part of the Our Biggest Market campaign, which I am proud to support, we will be hosting an event with the Birmingham Chamber of Commerce on European business development and support for SMEs looking to export or develop new and existing markets. With a few more of these events around the country we'll soon get the British economy back up and running again and let the public know just how important the EU is to SME manufacturing businesses like mine and many others.