The Importance of the Manufacturing Industry for the UK

We often underestimate the importance of the manufacturing industry for the UK. As the MD of a manufacturing company, Dean Group, I am well aware of just how crucial this sector is to the economy.

The United Kingdom has had a long manufacturing history, as evidenced by the industrial revolution of the late 18th century that made us what we are today. Our country’s contributions – and value – to employment and the economy provide a solid base for growth that, ultimately, benefits us all.

Employment Statistics

According to the EEF, the manufacturing industry directly employed 2.7 million employees in 2016 and 2017.

Not only that, but the industry also pays more on average. Since 2013, there has been a 3% rise in average earnings in this industry, with a mean annual gross pay of ￡31,489, which means that wages in the different sectors of the industry are higher than other sectors and industries in the country.

Economic Contribution

The manufacturing industry contributes 10% to the GVA, or Gross Value Added, of the country. From the ￡110,000 million manufacturing contributed in 1989 to approximately ￡148,000 million just in 1997, the importance of its economic benefits is impossible to deny.

This industry is also one of the most productive in the UK, showing a growth of 1.45% since 1948. In order to keep adding value to products and services and to carry on seeing a rise in growth, it is crucial that businesses continue to innovate and respond to the market as it changes.

Prospering with Change

The UK is the 9th largest manufacturer in the world and, in order to achieve this position, we’ve had to acclimatise ourselves to new and improved technologies and techniques as a whole. An example is the Internet of Things. Being connected is becoming increasingly more important to create the future of manufacturing we desire, so companies have to improve their connectivity in order to remain competitive in a constantly changing market.

Implementing these new measures has allowed the UK to stay at the top of our game even after the uncertainty looming over us due to Brexit. Continuing to be innovative has allowed the UK manufacturing industry to contribute to a wide range of sectors around the world – for instance, the UK aerospace sector has a market share of 18% (the biggest in Europe), which is only second to the United States. The UK aerospace exports are now worth ￡26 billion as well. Overall, the industry has almost ￡32 billion of annual turnover.

All of this, and more, clearly showcase just how important manufacturing is to the UK – and how its importance is only going to continue to rise. For a lot of people, manufacturing forms the backbone of many countries and, with a contribution of ￡6.7 trillion to the global economy and the creation of millions of jobs, I couldn’t agree more.

This couldn’t be more obvious in the UK, as the various contributions made by the manufacturing industry are set to take the country to new heights in the near future.

I am the managing director at Dean Group, a company that specialised in high-quality investment casting.