Industry grows but manufacturing slumps

Cannon_Fodder

"expectations"

1984ReturnsForReal_2

Excellent.

We produced more gas & oil that we keep & use....

That will bring in billions...

Thrugelmir

chucky wrote: »

because it's cheaper not only to produce in China but also to ship it to its destination - alternatives are for the Corus staff to work at the same wage level as the Chinese...

Fundamentally there's little demand in the UK for the product.

However take away the ability to even produce steel and the likelihood of new ventures starting up in the UK diminishes.

Easier to base a Company in the Netherlands where steel is still produced and ship across North Sea route.

Seen this happen to a few companies that are non steel related, medical instrumentation being one. As being based in the Netherlands also gives easy access to German and French markets.

Thrugelmir

HAMISH_MCTAVISH wrote: »

And we emerged without significant improvement in manufacturing.

Britain has a diverse economy. We are still the 6th largest manufacturer in the world, and manufacturing is still a bigger slice of the pie than financial services, but it is a good thing IMO that we are not reliant on any one sector.

Manufacturing is in steady decline.

UK gross domestic product

Financial services share of UK GDP

Financial services accounted for 8.3%

of UK GDP in 2007 (most recent official estimate), having risen steadily
from 5.3% in 2001 (Chart 1). This is slightly higher than the US share of
7.5% and of Japan 6.7% (Chart 2). In France and Germany financial services’ share of GDP is lower at 4.6% and 3.8%.
The growth in UK financial services’ share of GDP up to 2007 contrasts with the declining share of the manufacturing sector: down over a third from 20.3% to 12.4% over the past decade. The share of GDP accounted for by professional services, including accounting services, legal services and management consultancy, has risen from 2.9% in 1997 to 3.9% in 2007.
Regional distribution of financial services

The most recent regional data on

the sector breakdown of GDP is for 2007. Financial services is heavily
concentrated in London, which accounted for 45% of value added generated by the sector in 2007 (Table 1). The next largest contributors are the South
East with 10.1% and Scotland 7.4%. As much as 18.3% of GDP in London
was generated by financial services, more than double the UK share of 8.3% in that year and a reflection of London’s status as a global financial centre.
This share, calculated on a work-based comparison, is higher than the
residence-based share of 16.5% because of people commuting to work in
London mostly from the South East region.
The concentration of financial services in London means that in other regions financial services’ share is less than the UK average. After London, financial services relative regional importance is greatest in Scotland where it accounts for 7.7% of the region’s GDP. Financial services’ regional influence is least in East Midlands, Wales, the North East and Northern Ireland in each of which it accounts for around 4.5% of regional GDP.

A recent survey expects a net decline in financial services in the 1st quarter of 2010.

Maybe tourism will come to the rescue of the economy?

www.ifsl.org.uk

Thrugelmir

1984ReturnsForReal wrote: »

Excellent.

We produced more gas & oil that we keep & use....

That will bring in billions...

North Sea oil and gas is already taxed at an effective rate of 75%. So high in fact that net exploration spend in 2010 has been estimated to drop from £5 billion to £4 billion. As its not worth the trouble of extracting from the more difficult fields at such a penal rate of tax.