Throughout the years, the british manufacturing industry has been on the rise. Known as a powerhouse in the global sector, it has contributed directly to Britain’s economic growth since the Industrial Revolution in the 18th Century. Contributing to £6.7 trillion globally, it’s a thriving sector to be working within. With the UK businesses holding its place as the “world’s eighth largest industrial nation”, the growth is expected to continue.
Predictions even indicate that by 2021, the UK will find itself within the top five in the world. According to Make UK, Britain is currently experiencing the following:
- 11% of Gross Added Value.
- 44% of the total UK exports (with a worth of £275 billion).
- Over 2.6 million people are employed within the manufacturing sector.
- 70% of business Research and Development.
With more and more businesses investing in manufacturing, it’s clear that this pattern will continue to occur. With an incentive to invest due to R&D tax credits (a tax incentive which is designed to encourage UK companies – in return they will have a reduced tax bill), businesses are seeing the benefits that come with it. Also, with the advance of innovative technologies, business funding is finding itself at the forefront of the industry.
From sustainable manufacturing to transport, clean energy and automotive technology, the need for manufacturing companies is ever-increasing. Shifting from manufacturing high productivity goods to an increased investment in automation and R&D (69% of the industry), the sector is finding a new target.
How Fears of Brexit Have Affected The Industry
Brexit has made a big impact on the manufacturing sector. With fears that the UK economy and global growth will be affected, many manufacturing companies are taking action. However, despite these fears, reports show that the sector began to boom at the start of the year as more companies increased the output of products.
Amidst concerns of a no-deal Breit, the performance of the sector is on the rise. Realising the potential of the industry, many believe that Brexit will bring opportunities to the industry. How? By utilising the current and future advances in technology to create products on-shore.
Areas of The Country That Have Grown
Over the years, areas in the UK have shifted depending on their manufacturing jobs output. Although the East and West Midlands frequently held the top two positions within the sector, according to the Regional Manufacturing Outlook 2019 report BDO and Make UK, this has changed. Now showcasing that the South East & London have 39% manufacturing output, whereas the West Midlands has 16.5%, it’s unclear as to what the future will look like.
However, 13% of East Midlands’ workforce is within the manufacturing industry – the highest of any region in the UK. Also, this report showed that the East Midlands is the most improved region in Britain over the last year, with a worth of over £17.2 billion. Showcasing the importance of performance in the industry, it indicates how the sector needs to be successful in order to benefit the East Midlands economy.
Sectors that are growing
In the UK, there are many sectors within the manufacturing industry which are growing. We’ve picked out three in particular, that showcase their impact on the industry – Aerospace, Construction and Automotive.
The Aerospace Industry
The aerospace industry has faced an impressive 30% of productive growth in the last five years and a 39% growth since 2010. Because of this growth, it has over 100,000 jobs across the UK, resulting in an annual turnover of £31 billion. Holding an 18% share in the global market, it’s clear that this sector of the manufacturing industry is booming – and will set to continue to grow with the investment in aerospace engineering.
The Construction Industry
This sector has held a high position within the industry for 100s of years. Invaluable to the economy, there’s no indication that it will fall throughout the next few years. Holding over one million jobs and an annual turnover of over £92 billion in the UK economy (which accounts for 6.4% of the UK’s total output), it’s a sector that’s thriving in several regions across the country.
The Automotive Industry
Similarly to construction, the automotive industry is a key sector in the UK. Holding over 160,000 jobs, a £71.6 billion annual turnover and producing £34.3 billion in exports (12% of the UK total), it’s a sector that will be needed for many more years. Although Brexit is threatening this sector, with the current ability to make over 80% of a vehicle in the country, it’s fair to say that we can continue to create vehicles for UK residents even if we reach a no-deal.