UK manufacturing sectors outperforming rest of economy says industry report

13th Aug 2008

Published by EEF, the manufacturers’ organisation and business advisers BDO Stoy Hayward, ‘Modern Manufacturing – The High Performers’ reveals the top 20 sectors in the UK manufacturing industry. The figures surrounding these high achievers show that even in the current economic climate, UK manufacturers are experiencing stronger rates of growth than their French and German counterparts.

The research also adds weight to the claim that manufacturers are seeing the benefits of a growth in world trade by employing new strategies. These include technology-driven responses to globalisation, innovations in process, design and services.

Over the last five years, nine sectors have outperformed the manufacturing average: transport equipment, mechanical equipment, medical and precision instruments, other non metallic equipment and recycling sectors have seen especially strong growth, having expanded between four and ten times the average. Together, these sectors account form almost 60 per cent of UK manufacturing output.

As well as highlighting the pace of growth, the report shows the diversity and size of the high performing sectors. There are a small number of large sectors in the top 20 with aerospace and pharmaceuticals alone accounting for a tenth of output. But other sectors in the list are much smaller but growing very quickly, highlighting the evidence that companies operating in niche sectors can be highly successful. In the fast changing global world of today this also highlights that adaptability and speed of response may be more important than scale.

Martin Temple, EEF chairman, commented: “This report is the final nail in the coffin of the myth that manufacturing is in decline. The reality is a dynamic, innovative and increasingly high value sector that is competing successfully across the globe. What is especially notable is the diversity of activities that are thriving. Alongside the well-known success stories of aerospace and pharmaceuticals, are sectors producing scientific instruments, mechanical appliances and basic metals – which also have shown strong growth and have a solid international reputation.”

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