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Is manufacturing finished in the UK?

June 12th, 2019 by Graham Attwell

The Guardian newspaper highlights a report by Cambridge University for the Department for Business, Energy and Industrial Strategy (BEIS), showing that Britain’s manufacturing sector is much larger than official figures suggest.

The report argues that official statistics, which estimate that manufacturing output accounts for 9% of national income, are based on “outdated and inaccurate methods of counting” and the figure is much higher.

The report avoids putting a fresh figure on the proportion of GDP accounted for by the sector, but one of its authors said it was nearer 15% once activities tied to the sale of UK-made products, including engineering support and contracted services, were included.

“It is essential that policymakers have accurate information on the size of manufacturing sectors in order to develop an internationally competitive industrial strategy,” said Eoin O’Sullivan, one of the report’s authors.

“In particular, policymakers need to be able to measure manufacturing in a way that better reflects how firms actually organise themselves into value networks.”

While the Guardian news spin on the report focuses on the threat to the manufacturing by tariffs on exports resulting from a no deal Brexit, the report has wider implications. Manufacturing has long been seen as in decline and is accordingly unattractive as a careers option when compared to the growing service sector. Yet the report shows the continuing importance of occupations like engineering.

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