Several years had passed by and Britain’s manufacturing industry continued to decline. And today, this downturn has sparked renewed British interest in reviving manufacturing. Yes, China has gained so much attention with their cheap labor and cheap products offerings but don’t look down on Britain as they will probably give a good run by producing a far more better quality products.
Manufacturing has long been the poor relations of the British economy. It is often characterized by inexorable decline, overshadowed by the booming modernity of high finance among many other aspects. But when the recession came such as the collapse in the banking industry, manufacturing is just perhaps one word that is needed to turn the rhetoric into reality.
Although manufacturing output was falling in the past twelve months, which is perhaps the fastest drop since records began in 1948, there is one positive side. The industry still comprises 13.5 percent of the economy compared to the less than ten percent from the much vaunted financial services sector. They carry out 74 percent of business funded research and development and still has the highest employment rate of 2.6 million people. Moreover, it generated 53 percent of the country’s export earnings.
But the problem really is that there is not enough of it in the country. Britain is just 0.5 percent of big UK Manufacturing companies, they are only 1 percent of Europe and only 1.4 percent in the United States. So how is the situation to be solved?
Well, that is to revive to industry putting in more focus on large-scale manufacturing.
Obviously, it is easier said than done, as it is too late to resurrect mass market, world-leading industries of the past such as machine tools, etc. However, to take advantage of the revival is to realize the strong pull of genuine demand nowadays. The energy sector is a case in point. People now consume more and more gas and electricity.