South: EEF figures show UK manufacturing climbing global rankings
The latest facts and figures published by EEF, the manufacturers’ organisation, and Santander show that British manufacturing has continued its climb up the global rankings. Britain is now the ninth-largest industrial nation with an annual output worth $247 billion. Manufacturing accounts for some 10% of gross value added for the UK economy, for 14% of business investment, and 68% of business R&D.
This positive picture is reflected in data on employment and earnings where, according to the OECD, UK manufacturers have outperformed any country except the United States for job creation since 2010, while since 2013 average earnings have risen by 3%, twice the rate of the economy overall. In contrast to common perception manufacturing offers high-value, well-paid jobs, with average earnings of £31,489 per annum compared to £27,607 for the whole economy.
The picture of what constitutes modern manufacturing is reflected in the sectoral contribution. The largest individual sector is food and drink (17%), while the chemicals and pharmaceuticals and transport sectors both account for 14% of output. Chemicals and pharmaceuticals is also by some distance the largest individual sector driving innovation, investing over a third of the total annual amount of manufacturing R&D.
According to the data, the South East, including London, accounted for some £25 billion worth of output, around 11% of the regional economy overall. The data also shows that manufacturing employs just over 400,000 highly-skilled people across the region, almost 8% of the total employment.
Jim Davison, region director for EEF in the South East, commented: “Given the importance of manufacturing to the economy it’s vital that we educate all stakeholders about its real value and contribution to growth. This is especially important in a post-Brexit world where we have to look at all new avenues of generating growth and investment.”
Charles Garfit, head of manufacturing at Santander Corporate & Commercial, said: “It is great news that the UK has re-entered the top 10 manufacturing nations. It is interesting to see that there has been growth in the non-traditional sectors and regions.”
