Sunday, 2 January 2011

UK Manufacturing needs support

The UK manufacturing sector should be at the forefront of the countrys economic development, the CBI said recently.

The CBI has published its Vision and Ambitions for UK Manufacturing, ahead of a widely anticipated Government framework for the sector and review of advanced manufacturing.

John Cridland, CBI Director-General Designate, said: UK manufacturing is in many ways the unsung hero of our economy. Big productivity gains in the past ten years have made it leaner than ever before, and its now well placed to lead the countrys economic recovery.

To achieve this, however, the Government must act fast. It should build on the sectors strengths, work with business to harness its innovation, and create a tax and regulatory environment that helps UK manufacturers drive up growth in productivity and exports.

We want the Government to be ambitious: focus its support on the sectors with most export growth potential, and improve the UKs competitiveness as a place to invest.

Since 1997, productivity in UK manufacturing has increased by 50%, about double the growth in productivity for the economy as a whole. The sector accounts for 46% of the UKs exports and 74% of its research and development (R&D).

1 comment:

mark.greenhouse said...

John, some great figures which we should shout about! Which other sectors have improved productivity by 50% in ten years? Who will take up the challenge to match or surpass it in the next ten years?

Imagine that for a second, if a job took an 1 hour to complete 100units, you now get 150, or it takes 40 mins to do the same 100 units, a 33% improvement in input cost.

Imagine if other sectors could match that? Services, Professional services, Government, Local councils etc

As for support for Manufacturing it was good to see the Government announce the £50M continuation of the Manufacturing Advisory Service, MAS, prior to Christmas and asking for input to the review of advanced manufacturing. Have a look at the BIS website for details.

Now we need to get manufacturers to look beyond the shop floor into marketing, sales, finance, development, purchasing etc to see how continuous improvement can really be organisation wide.

Mark @theleanmanager