Prof Maurizio Bragagni OBE is a distinguished leader known for his multifaceted contributions to business, diplomacy, and academia. As the CEO and Chair of Tratos Ltd, a leading manufacturer of electrical cables, he has steered the company to global prominence through innovation and strategic vision.
In addition to his corporate leadership, Prof. Bragagni serves as the EBRD Governor for the Bank of Reconstruction, leveraging his expertise to shape economic policies and foster international cooperation. As Consul of the Republic of San Marino to the UK, he is pivotal in strengthening diplomatic relations between the two nations.
Bragagni’s commitment to education is evident in his roles as Honorary Visiting Professor at Bayes Business School, London, and Visiting Professor at Bolton University. Through his mentorship and academic endeavours, Prof Maurizio Bragagni inspires and empowers future leaders.
More information can be found on his website: https://www.bragagni.uk/
We met Prof Bragagni and asked his views on the following questions:
Can you explain why IF is the best-emerging forum for UK industrialists?
Maurizio Bragagni: I firmly in the success of the IF as its members are industrialists who have spent their lives dedicated to shaping the very fabric of industry in the UK. With a rich heritage deeply rooted in British industry, IF stands as a beacon of support and empowerment for its members. Here’s why IF is the premier forum for UK industrialists:
- Unwavering Support for Members: IF is committed to providing unparalleled support to its members, especially in the realm of political representation. By offering resources, advice, and connections, IF ensures that incumbents have the necessary tools to strengthen their positions and increase their chances of re-election. This level of support is unmatched and crucial for industrialists to effectively serve their constituents.
- Promotion of Talent and Values: IF actively seeks out and promotes individuals who share its values and demonstrate a profound commitment to advancing British industry. Whether they’re aspiring politicians or professionals within the industrial sector, IF believes in nurturing talent and empowering individuals to contribute meaningfully to the nation’s industrial legacy. This dedication to promoting talent ensures a vibrant and effective representation within the industrial community.
- Advocacy for Low Taxes and Economic Growth: Central to IF’s mission is the belief in a low-taxed economy as a catalyst for economic growth and innovation within the industrial sector. By advocating for policies that promote favourable tax environments, IF creates opportunities for businesses to thrive, create jobs, and contribute to the overall prosperity of the nation. This strategic advocacy sets IF apart as a forum dedicated to fostering a conducive environment for industrial success.
- Strategic Partnership with Techne UK: IF’s partnership with Techne UK, a renowned polling and consultancy agency, adds a significant layer of expertise and insight to its operations. With Techne’s extensive experience in understanding demographic data and political affiliations, IF ensures that its initiatives are well-informed and effective in advancing the interests of British industry. This partnership underscores IF’s commitment to excellence and strategic decision-making.
- Fostering a Strong Industrial Community: Beyond its deep roots in British industry, IF actively fosters a stronger industrial community through networking events, conferences, and resource-sharing initiatives. By facilitating collaboration and knowledge exchange, IF drives innovation, growth, and prosperity across various industries, thus contributing to the continued success of British industry on the global stage.
In essence, IF stands as the premier emerging forum for UK industrialists because of its unwavering support, promotion of talent and values, advocacy for low taxes and economic growth, strategic partnerships, and commitment to fostering a robust industrial community. Joining IF means being part of a dynamic network dedicated to championing the interests of British industry and shaping a brighter future for generations to come.
What are the most pressing Brexit-related difficulties that industrialists are facing in the UK post-Brexit?
Maurizio Bragagni: Post-Brexit, UK industrialists are encountering several pressing challenges, two of the most significant being the lack of available talent and the risk of isolation:
- Lack of Available Talent: One of the critical concerns for industrialists post-Brexit is the shortage of skilled labour and talent. With the end of the free movement of people from the European Union (EU), industries reliant on EU workers, such as manufacturing, construction, and healthcare, are facing difficulties in filling vacancies. This shortage of talent not only hampers productivity but also threatens the overall competitiveness of UK industries on the global stage. Industrialists are grappling with the need to attract and retain skilled workers amidst a shrinking pool of available talent.
- Risk of Total Isolation: Brexit has also raised concerns about the risk of total isolation for UK industries. The uncertainty surrounding trade agreements, customs procedures, and regulatory frameworks has created barriers to market access and disrupted supply chains. Industrialists are navigating complex trade rules and tariffs, which could potentially lead to increased costs, delays in delivery, and loss of market share. The risk of isolation from key trading partners in the EU amplifies uncertainties and poses significant challenges for UK industrialists seeking to maintain competitiveness and access to global markets.
Indeed, amidst the challenges posed by Brexit, there exists a significant opportunity for UK industrialists to reshape the future of British industry:
- Innovation and Adaptation: Brexit presents an opportunity for industrialists to innovate and adapt to new market conditions. Facing constraints such as talent shortages and trade disruptions, industrialists are compelled to find creative solutions and adopt innovative technologies to increase efficiency and competitiveness. This drive for innovation can spur advancements in automation, digitalization, and sustainable practices, positioning UK industries as leaders in the global market.
- Diversification of Markets: Brexit encourages industrialists to diversify their markets beyond the EU and explore new trade opportunities globally. By expanding into emerging markets and forging trade agreements with non-EU countries, UK industries can reduce dependency on traditional markets and tap into new sources of growth and revenue. This diversification strategy enhances resilience and strengthens the position of UK industrialists in the global marketplace.
- Investment in Skills and Education: The challenges brought about by Brexit underscore the importance of investing in skills development and education within the UK workforce. Industrialists have the opportunity to collaborate with educational institutions and government agencies to design training programs tailored to industry needs, ensuring a steady supply of skilled workers equipped to meet the demands of a rapidly evolving industrial landscape. By nurturing a highly skilled workforce, industrialists can drive productivity, innovation, and sustainable growth.
- Redesigning Regulatory Frameworks: Brexit provides industrialists with the opportunity to influence and shape regulatory frameworks to better suit the needs of UK industries. By advocating for streamlined regulations, reduced bureaucracy, and targeted incentives, industrialists can create a more conducive business environment that fosters growth and investment. This proactive approach to regulatory reform empowers industrialists to address longstanding barriers and unlock new opportunities for innovation and expansion.
In summary, while Brexit presents challenges for UK industrialists, it also offers a compelling opportunity to reshape the future of British industry. By embracing innovation, diversifying markets, investing in skills, and redesigning regulatory frameworks, industrialists can position themselves as leaders in the global marketplace and drive sustainable growth and prosperity for generations to come.
What advice can you offer to businesses to mitigate the consequences of supply chain disruption, labour and skills shortage, and inflation?
Certainly, leveraging innovation, as demonstrated by Tratos through the introduction of Bornewables™ in the energy industry, can serve as a transformative strategy for businesses to mitigate supply chain disruptions, labour and skills shortages, and inflationary pressures:
- Supply Chain Resilience: Innovating with sustainable materials and manufacturing processes, similar to Tratos’ collaboration with Borealis, can enhance supply chain resilience by reducing dependency on traditional raw materials and suppliers. By incorporating renewable feedstocks, businesses can diversify their sources of inputs, mitigate the risk of supply chain disruptions, and ensure continuity of operations even in challenging circumstances.
- Addressing Labor and Skills Shortages: Investment in innovative technologies such as automation, robotics, and AI-driven systems can help mitigate labour and skills shortages by augmenting workforce capabilities and improving productivity. By automating repetitive tasks and streamlining processes, businesses can optimize workforce utilization, minimize reliance on scarce labour resources, and maintain operational efficiency despite workforce constraints.
- Managing Inflation: Embracing innovation in product design, manufacturing processes, and cost optimization can help businesses mitigate the impact of inflation by reducing production costs and improving operational efficiency. For instance, by developing eco-friendly materials like Bornewables™, businesses can achieve cost savings while aligning with sustainability goals, thus offsetting inflationary pressures and maintaining competitiveness in the market.
- Maintaining Competitive Advantage: Continuously innovating and introducing novel solutions, akin to Tratos’ pioneering use of Bornewables™, enables businesses to differentiate themselves in the market and maintain a competitive edge. By offering innovative products and services that address sustainability concerns and meet evolving customer preferences, businesses can capture market share, attract new customers, and enhance brand reputation, thus securing long-term success in a dynamic business environment.
Embracing innovation, particularly in the adoption of sustainable materials and advanced manufacturing processes, empowers businesses to overcome supply chain disruptions, labour shortages, and inflationary challenges. By leveraging innovation as a strategic tool, businesses can enhance resilience, drive efficiency, and maintain competitiveness, ultimately positioning themselves for sustained growth and success in the post-Brexit landscape.
Do you believe there are opportunities in the UK’s current fiscal policy that have yet to be explored?
Maurizio Bragagni: Amidst the challenges posed by conflicts in Ukraine and the Middle East, the UK has remained steadfast in addressing pressing economic priorities. Since the beginning of 2023, our focus has been on five key areas, with three of them primarily economic. Our efforts have been directed towards halving inflation, fostering economic growth, and reducing debt.
The progress achieved thus far is commendable. Inflation has significantly decreased from 11.1% to 4.0%, surpassing initial forecasts. Additionally, the economy has demonstrated resilience, outperforming expectations, and witnessing wage increases. The reduction in mortgage rates further underscores the positive trajectory of economic recovery. Notably, the UK’s economic performance has surpassed that of our European counterparts, with debt projected to decrease as a share of the economy.
Despite these advancements, our work is ongoing. However, the strides made indicate a turning point in the economy, enabling us to implement tax cuts as part of our strategy to incentivize work and spur economic growth.
Today’s budget announcement reaffirms our commitment to this plan. By reducing National Insurance Contributions (NICs) for 29 million working individuals, we take another step towards addressing the inherent unfairness in the tax system. Our long-term ambition is to rectify disparities whereby individuals earning income from employment are subjected to double taxation, unlike those deriving income from other sources.
The cumulative effect of our fiscal measures, including NICs cuts totalling £20 billion, underscores our dedication to supporting working families and fostering economic prosperity. These tax reductions, combined with adjustments to the High-Income Child Benefit Charge, aim to alleviate financial burdens on households, particularly amidst rising living costs.
Moreover, our budget prioritizes crucial sectors such as healthcare, with substantial investments totalling £6 billion to bolster the NHS and enhance productivity. Additionally, measures to boost public sector productivity through targeted investments and reforms signal our commitment to delivering value for taxpayers’ money.
As we navigate through global uncertainties, our adherence to a coherent economic strategy remains unwavering. The choices before us are clear: continue with the plan that has yielded tangible results under the leadership of Rishi Sunak and the Conservatives, or risk regression by opting for uncertainty with the alternative. By sticking to our plan, we can build a brighter future for the nation, ensuring economic resilience and prosperity for all. #UKBudget #EconomicRecovery
The UK government has identified 4 “Grand Challenges” in its Industrial Strategy, namely: artificial intelligence and big data; clean growth; the future of mobility; and meeting the needs of an ageing society. How can IF contribute to any of these challenges?
Maurizio Bragagni: The Industrialist Forum (IF) can play a crucial role in contributing to the UK government’s “Grand Challenges” outlined in its Industrial Strategy by leveraging its unique position as a think tank bridging the gap between industry, academia, and policymakers. Here’s how IF can contribute to each of the identified challenges:
- Artificial Intelligence and Big Data: IF can facilitate collaboration between industry experts, academic researchers, and policymakers to drive advancements in artificial intelligence (AI) and big data technologies. By fostering dialogue and knowledge exchange, IF can identify opportunities for innovation, address regulatory barriers, and promote ethical AI adoption. Additionally, IF can support initiatives to develop AI talent pipelines through educational partnerships and workforce development programs, ensuring that the UK remains at the forefront of AI research and implementation.
- Clean Growth: IF can champion sustainable practices and technologies within the industrial sector to promote clean growth. By bringing together industry leaders, academic researchers, and policymakers, IF can identify best practices, share insights on renewable energy, and advocate for supportive policies and incentives. Furthermore, IF can facilitate collaborative research projects focused on developing clean technologies, reducing carbon emissions, and enhancing resource efficiency, driving sustainable growth and environmental stewardship within the industry.
- The Future of Mobility: IF can facilitate discussions and partnerships aimed at shaping the future of mobility in the UK. By convening stakeholders from the automotive, transportation, and technology sectors, IF can explore opportunities for innovation in electric and autonomous vehicles, intelligent transportation systems, and sustainable mobility solutions. Additionally, IF can advocate for investment in infrastructure, research, and development to support the transition to cleaner, more efficient transportation systems, ultimately driving economic growth and reducing environmental impact. Also, I have promoted even in IEC the lean mobility concept.
- Meeting the Needs of an Ageing Society: IF can address the challenges and opportunities associated with an ageing population by fostering collaboration between industry, academia, and healthcare providers. By facilitating dialogue and knowledge sharing, IF can identify innovative solutions to support active and healthy ageing, improve healthcare delivery, and enhance the quality of life for older adults. Additionally, IF can advocate for policies and investments that promote age-friendly workplaces, accessible healthcare services, and innovative technologies tailored to the needs of older populations, driving economic productivity and social inclusion.
Michael Porter’s concept of industrial clusters underscores the importance of collaboration and specialization within geographic regions to drive competitiveness and innovation. IF can serve as a catalyst for the formation of industry clusters by facilitating networking, knowledge exchange, and collaboration among businesses, universities, and government agencies. By fostering synergies and leveraging collective resources, IF can strengthen industrial clusters in key sectors related to the identified “Grand Challenges,” driving economic growth, innovation, and sustainable development across the UK.