In order to maintain a healthy economy and increase growth within the UK market, it is important that we understand how important manufacturing is for the U.K market.
Many people believe that manufacturing in the UK is already extinct, if not in the very near future but to the facts match the opinions?
Reports show that Gross Domestic Product (GDP) has been gradually falling since the 1960s and has declined from 30 % in 1970 to 12% by 2010. This meant that manufacturing products in the UK began to plummet in 1998 following the descent of productivity and the rise of the pound sterling, with higher wage costs contributing to the difficulty to compete with lower wage economies such as China.
These figures along with the ongoing recession, can be perceived as quite alarming at first and mislead us to the conclusion that manufacturing in the U.K will be obsolete before we know it.
At the height of the recession between 2008 and 2009 production in the UK decreased by over 14% with many companies outsourcing their manufacturing processes outside of the UK to reduce cost and increase productivity.
This ensured the reduction between 2008 and 2009, which then rose at a rapid rate by the end of 2010 until it declined again in 2012.
By 2013 UK manufacturing began to rise again gradually, and in quarter 4 of 2014 had increased by over 3.4% along with the economy also increasing by 3%, when compared to 2013. This lead to more new builds, increasing the building and construction sector, therefore increasing the demand for new recruits and decreasing unemployment rates.
The benefits of UK manufacturing include but are not limited to, reduced lead times for products that are strictly controlled and reviewed by U.K legislations, ensuring a high quality and safe product. Also, this increases employment rates within the U.K, it also assists with communication, with no language barriers or time differences. This means that should you require assistance, the process of understanding your requirements could be reduced. One of the larger benefits for manufacturers would be that it allows companies to increase and build lasting relationships.
The UK is the worlds’ 6th leading the manufacturing market, holding high positions in the primary key industries including aerospace.
The city that provides the lowest rate for employment within the manufacturing sector is London accounting for only 2.4% of manufacturing jobs within the UK, and the highest being Yorkshire with 12.3 %.
The West Midlands closely follows accounting for 11.3% of manufacturing Jobs in the Midlands.
There are many reasons why manufacturing has increased, and it set to grow for many years with one of them including, research and development. New energy efficient products are being introduced into the market to assist with saving money and reducing our carbon footprint.
Combat has been an established British manufacturer of industrial HVAC Solutions in the UK for over five decades. Based in the West Midlands, Combat HVAC are proud of our contribution to combat our carbon footprint, by manufacturing in the U.K and energy efficient commercial radiant and warm air heating equipment.
Maintaining our manufacturing in the UK contributes to increased research and development accelerate our efforts to provide environmentally friendly products for the commercial heating industry for years to come.
In conclusion, research actually confirms that British manufacturing is not only still present in the U.K but growing at a very steady pace and Combat will continue to support the UK manufacturing industry by maintaining our production of high quality British products.