‘This deplorable neglect of our last industries’

Mar 20 2008 by Henryk Zientek, Huddersfield Daily Examiner

A HUDDERSFIELD man who heads one of the UK’s most successful textile firms has called for “less government, not more” in a talk to industry leaders in West Yorkshire.

James Sugden, group managing director of wool and cashmere specialist Johnstons of Elgin, based in the Scottish Highlands, said he was not pessimistic about what remained of the ‘niche’ textile businesses.

But he criticised political “obsessions” with Europe and regulation, adding: “I constantly plead to our political masters that we want less government, not more.

“Too often, political leaders do not understand that you cannot replace growth in productivity by growth in regulation nor should you mistake compliance for entrepreneurialism and expect there to be no difference in the outcome.”

Mr Sugden, whose mother Helen lives at Almondbury, said: “The imbalance in our economy, which most of us have watched here with horror over the last decade as we have developed a worsening financial situation, has produced a country that is totally dependent on imports.

“The Government’s neglect of remaining industry is deplorable.”

He said the Government was presiding over a “wholly undesirable” situation where 2% economic growth was hailed as an achievement when growth in other economies was far above this figure.

“They are labouring under the burden of a budget deficit, a trade deficit and a deficit in supporting wealth-creating industry,” he added.

Mr Sugden’s comments came at the Bradford Textile Club, where he was delivering the annual PP Townend Lecture to members of the Textile Institute’s Yorkshire section.

Mr Sugden outlined how Johnstons of Elgin had survived and thrived by focusing on quality, innovation and service.

The company, which makes cloth, accessories, home furnishings and knitwear, employs 550 people and has annual sales of £40m, including £5m in retail.

Mr Sugden said: “The odds are stacked against us. We are nearer to Reykjavik than our major markets. We are hundreds of miles from any other major industrial centre and we are operating in a global market where clothing prices have dropped 30% in the last two years.

“Our business may have been around for 200 years, but that guarantees nothing, however beautiful the scenery is.”

Mr Sugden said the firm focused on quality in processing, marketing, service and ethics.

“We are fortunate that Made in Scotland does carry a premium tag, but we have to live up to the expectations and this is a constant job.”

The company was also keen to innovate – producing new clothing collections for all four seasons rather than the traditional two and making more lightweight products to suit modern tastes.

Mr Sugden joined Johnstons of Elgin in 1986 as sales director and became managing director the following year. He is now group managing director of the business, which carries out dyeing, spinning, weaving and knitting at two mills and sells to retailers in the USA, Japan and Europe.