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Manufacturing fastest growing part of UK economy for first time since 1870s
vivatifosi
Posts: 18,746 Forumite
Long but interesting article on UK manufacturing and in particular export of manufactured goods in today's Telegraph. The quotes aren't the main thrust of the article, but are about the shape of industry and I found them the most interesting. It does talk about some of the challenges as well as successes. The whole article is well worth a read:
http://www.telegraph.co.uk/news/uknews/8626512/Can-Britain-sell-Agas-to-the-Chinese.html
“Manufacturing has come out of the recession very well,” says Terry Scuoler, chief executive of the Engineering Employers Federation. “There are headwinds but we are producing three per cent growth, which is well above GDP. Devaluation has helped and there has been some very positive leadership on tackling overseas markets. Manufacturers kept on workers to take advantage of that opportunity. They’ve got on their bikes and gone out to the Bric nations. Our exports to the Brics were at a relatively low base but are growing significantly. This is about investment, innovation and technology.”
Fifty-three per cent of British exports are manufactured goods despite the sector accounting for 13 per cent of the economy as a whole. The Bric economies look to Britain for luxuries (Rolls Royce, Jaguar Land Rover, Mulberry), as well as capital products to equip their own manufacturers....
....Ross Walker, UK economist at RBS, says British manufacturing has suffered from a kind of invisibility. “Manufacturing is probably in better shape than most people realise. It has a bigger share of the economy than financial services and this is the first time since the 1870s that manufacturing is the fastest-growing sector. We have a number of world leaders but there’s a long tail of struggling firms and mediocre performers. We’ve pushed to the limit the borrow and spend, withdraw equity from your property, model. That’s hit the buffers. We’ve been running a significant deficit. We need to rebalance because the consumer is no longer in a position to drive the economy. We need more exports – and we can export manufacturing a lot easier than services.’’
The UK, however, has deep-rooted problems with training and skills. Universities may churn out media studies graduates but they produce only 25,000 engineers a year, compared with India’s 650,000. Mr Scuoler believes the Government is heading in the right direction in some areas but needs to go further in cutting red tape. “We are finally seeing the realisation of the need for skills,” he says. “Banks are slowly improving access to funding, especially for small companies, and we’ve seen some positive measures with corporation tax and capital allowances.”
http://www.telegraph.co.uk/news/uknews/8626512/Can-Britain-sell-Agas-to-the-Chinese.html
“Manufacturing has come out of the recession very well,” says Terry Scuoler, chief executive of the Engineering Employers Federation. “There are headwinds but we are producing three per cent growth, which is well above GDP. Devaluation has helped and there has been some very positive leadership on tackling overseas markets. Manufacturers kept on workers to take advantage of that opportunity. They’ve got on their bikes and gone out to the Bric nations. Our exports to the Brics were at a relatively low base but are growing significantly. This is about investment, innovation and technology.”
Fifty-three per cent of British exports are manufactured goods despite the sector accounting for 13 per cent of the economy as a whole. The Bric economies look to Britain for luxuries (Rolls Royce, Jaguar Land Rover, Mulberry), as well as capital products to equip their own manufacturers....
....Ross Walker, UK economist at RBS, says British manufacturing has suffered from a kind of invisibility. “Manufacturing is probably in better shape than most people realise. It has a bigger share of the economy than financial services and this is the first time since the 1870s that manufacturing is the fastest-growing sector. We have a number of world leaders but there’s a long tail of struggling firms and mediocre performers. We’ve pushed to the limit the borrow and spend, withdraw equity from your property, model. That’s hit the buffers. We’ve been running a significant deficit. We need to rebalance because the consumer is no longer in a position to drive the economy. We need more exports – and we can export manufacturing a lot easier than services.’’
The UK, however, has deep-rooted problems with training and skills. Universities may churn out media studies graduates but they produce only 25,000 engineers a year, compared with India’s 650,000. Mr Scuoler believes the Government is heading in the right direction in some areas but needs to go further in cutting red tape. “We are finally seeing the realisation of the need for skills,” he says. “Banks are slowly improving access to funding, especially for small companies, and we’ve seen some positive measures with corporation tax and capital allowances.”
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Comments
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So low interest rates are beginning to bear fruit. The devalued pound means that goods manufactured in the UK are becoming more attractive."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0
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Its time the government encouraged people to look towards apprenticeships then going to university to develop the manufacturing bases and the R&D base.0
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bengalknights wrote: »Its time the government encouraged people to look towards apprenticeships then going to university to develop the manufacturing bases and the R&D base.
Will still require major global companies to base and invest in an operation in the UK to create sufficient job opportunities in the sector.0 -
Hopefully some of these manufactured goods will be bought be people in the UK too, instead of us buying the bulk of products from places like China. Maybe we'll soon be able to "Buy British" once more.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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The comments from that Ross Walker made me laugh. "There aren't enough engineers in UK."
Well, duh, what does he expect ?
I was one of those who trained and worked in advanced manufacturing and CADCAM. I still follow some of the subjects in the discipline out of interest. But it was clear long ago that the rewards were not in manufacturing.
You can't blame people for following greater pay reward in IT or banking etc.
Successive governments have never valued engineering compared to even our neighbours on the continent.0 -
If you're bright and ambitious you go into The City. There is a lot of talent going to waste there.
Plenty of people with post grad degrees are basically just pushing buttons.
I used to work with a girl that had a PhD in maths that was doing a job that I could train anyone that posts on here to do in a couple of weeks.0 -
What Gen, even Graham?0
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If you're bright and ambitious you go into The City. There is a lot of talent going to waste there.
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I confess I am puzzled by this. The same must be true of Wall Street yeah?
The question then begs, the key people behind Google ; Amazon ; Facebook ; Apple resurgence et al, why didn't they choose Wall St instead ?
There must be something else to factor into the equation, or perhaps the scientists and engineers in the US are just greater risk takers ?
I dont see a great deal of risk taking on Dragon's den if im honest.0 -
Would suit Graham pretty well then I guess. He'd be able to afford a second house in the West Country with his bonus too. Win Win.
I'm a little bit dubious about any strength in the manufacturing sector anyway. I think it's stop start at the moment, but you sense a little more confidence than maybe 6 weeks ago. It's still a fair way back from pre recession though, that is a big caveat, we're seeing growth but from low levels.0
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