News
Manufacturing shows fastest growth
Statistics reported that Manufacturing shows fastest growth for 15 years’ is great news for the sector.
The boost in sales and the rise in employment is a positive start to 2010, but this is just the beginning.
The Process and Manufacturing sector has seen around a 25% drop in sales over the last year and we still have a long way to go before we are fully out of the recession and companies are able to recover to pre-recession, or 2007 levels.
The steady increases in production and in orders as reported are hopefully clear signs that manufacturing activity is on the up and this has been aided by the return of some production/manufacturing activity that is slowly moving back to the UK, encouraged by the weakening of the pound.
These are all positive indicators that should be supported if we are hoping to return to previous levels of output. We have an opportunity to reduce our reliance on imports and increase our competitiveness in the UK, if companies are confident to invest, and Government will help build up the skills base as we emerge from the recession. We need to insure that the sector and the workforce is ready to deal with the recovery, and looking ahead to the new opportunities that will emerge.
The Process Manufacturing Sector has generally invested heavily in the last 15 years in new technology and massively increased its productivity, but this is just the start; quality manufacturing is down to skilled workers. If we’re to continue with the steady increase in productivity and compete globally, it is essential that we have the resources available to up-skill and multi-skill our workforce. The government needs to do more to espouse the whole of manufacturing, and not just the high profile industries are prepared for this upturn.
The industries that make up the Process and Manufacturing sector represent over 1 million people and a 3rd of the UK’s manufacturing base; around 80,000 businesses in the UK.
These industries may not be high profile, and may not have the lobbying power of defence suppliers, automotive or power companies, but their outputs are fundamental to the development of the economy as a whole. As big technological innovations are happening in these industries Government needs to carefully balance its levels of support. There is a danger that key parts of the UK economy and significant parts of manufacturing, which are vital to growth, are missing out. Government programmes can’t make the changes, but the right leadership now can precipitate industrial action behind new opportunities and reset the ambitions of a sector that has had a really tough ride.
As Stephen Falder, Director HMG Paints and Chair of Proskills UK said “I firmly believe that investing in improving employee skills will not only help individual companies prepare for the upturn through helping people improve their abilities, but will also help the UK economy back into growth.”
“To optimise improvements in productivity, funding and support for qualifications, and training must be flexible enough to respond directly to the needs of employers and the people they employ. Support for all of the manufacturing industries across the UK will be vital to the continuous improvements in the economy in 2010 and precipitate the renaissance in manufacturing that the Government has talked about.”
Terry Watts
Chief Executive of Proskills, the Sector Skills Council (SSC) for the process and manufacturing sector