U.K manufacturing collapses !!!

luvpump

http://www.telegraph.co.uk/finance/economics/4966992/Worst-collapse-in-UK-manufacturing-in-four-decades.html

The “horrendous” scale of Britain’s industrial recession has been laid bare by figures showing that manufacturing output is declining at the fastest rate since records began more than 40 years ago !!! :eek:

Andrew64

So much for the low Pound! If nobody is buying anything at any price it doesn't matter how low the Pound goes so far as exports are concerned!

Really2

Andrew64 wrote: »

So much for the low Pound! If nobody is buying anything at any price it doesn't matter how low the Pound goes so far as exports are concerned!

True to a point but if people are buying less it is better that your product is competitively priced. (Houses are a good example of that)

so if the £ was still very high it would be a lot worse.

vivatifosi

Interesting article. What I'd like to know is the breakdown within the manufacturing sector and how much manufacturing is being brought down by the spectacular decline in a number of key sectors (eg car manufacturing and related industries).

In other words, does 'manufacturing' sometimes behave like the FTSE - where a large fall can be due to a loss of sentiment in one sector that makes up a lot of the index? How are the individual segments within manufacturing behaving?

Edited to add: found an answer to my question here: http://www.statistics.gov.uk/CCI/nugget.asp?ID=198

ukcarper

The manufacturing base is a lot smaller than it was 25 years ago so one or two big companies will have a bigger effect.

Conrad

Does it tickle you that in one breath a person will decry the fall of UK manufacturing and in the next gleefuly inform you of thier money saving purchase, made cheap as a result of being manufactured abroad!

fc123

Conrad wrote: »

Does it tickle you that in one breath a person will decry the fall of UK manufacturing and in the next gleefuly inform you of thier money saving purchase, made cheap as a result of being manufactured abroad!

I usually think that.

I have bizarre conversations with customers sometimes who blather on about fair trade this and that, Made in England, good quality at a price that rewards the maker and so on......then complain about an intricate garment costing 20 quid....and when will it go on sale so they can buy it for even less....ignoring that fact that if it's sold on markdown, the retailer gets less margin and may not survive.

I bought a dustpan and brush recently for £1...made in China. I have no idead how long it takes to make or even how it is made...but seemed very cheap to me. How much would a dustpan and brush cost if made in UK?

1984ReturnsForReal_2

You wait until May & June when the real figures come out..

Dire

FoxtonsRIP

more green shoots....mmmmmm

gordano_2

I think there are a combination of effects here. Many countries are seeing a severe decline in manufacutring ... including China! This is the global recession. To understand how this will impact longer term it needs to be put in persepctive of relative performance to other countries.

Once we start to come out of recession those that will benefit are countires who have maintaiened a manufacutring (and services for export) core combined with a competitive exchange rate.

Lets hope we maintain "relative" competitive performance ready for when things get better ... which they will eventually.

themanbearpig

Most of UK manufactures failed years ago. They are just surviving because they are getting huge government subsidies and tax breaks. We just can't compete in the world.