Report reveals ‘ True Impact ’ of manufacturing is nearly a quarter of UK GDP
MACHINING & MACHINERY A VITAL PART OF THE ECONOMY
MTA
Report reveals ‘ True Impact ’ of manufacturing is nearly a quarter of UK GDP
Manufacturing is having a far greater impact on the UK economy than first thought according to a major new report released today .
‘ The True Impact of UK Manufacturing ’, was unveiled at MACH 2024 in Birmingham , shows industry is worth £ 518billion and supports 7.3million UK jobs directly and across the supply chains / communities it operates in .
This represents nearly a quarter of total GDP ( 23 %) and far bigger than the direct contribution of 8.2 % that is usually quoted by economists .
Carried out by Oxford Economics and the Manufacturing Technologies Association ( MTA ), the in-depth report also shows that ‘ making things ’ accounts for 34.5 % of all UK goods and services exports , whilst the median wage is £ 31,300 – 11 % higher than the national median wage .
The findings are even more impressive when you consider the sector has had to navigate a myriad of challenges outside its control in recent years , including changing relations with the European Union , the Covid-19 pandemic , unprecedented increases in energy costs and global supply chain fragility and international conflicts .
MTA ’ s Chief Executive Officer , James Selka is now urging the sector to build on this report by exploring ways in which it can address the skills shortage and develop successful programmes , such as the High Value Manufacturing Catapult
The results illustrate that manufacturing accounts for £ 518bn of GDP and supports 7.3m jobs , most of which enjoy higher than average wages .
Centres , to increase wealth creation by commercialising more of the great ideas and innovations born in the UK .
“ This is a fantastic insight into the true impact of manufacturing in the UK and reinforces what many of us already know – that industry is a far greater contributor to GDP and jobs than listed in national accounts ,” commented James .
“ Our report has been designed to take a ‘ deeper dive ’ and looks at the direct , indirect , and induced impacts of manufacturing , which is a far more comprehensive overview of what we make , the complex nature of our supply chains and the economic benefit gained from the spending of wages by those employed in our sector .”
He continued : “ The results illustrate that manufacturing accounts for £ 518bn of GDP and supports 7.3m jobs , most of which enjoy higher than average wages .
“ We are also a part of the economy that invests heavily in new technologies , with nearly half ( 47 %) of total R & D investment made by manufacturers . You only have to visit MACH this week to see this firsthand , with more than 500 companies showcasing the latest in automation and robotics , additive manufacturing , latest software , advanced CNC machining and measurement and inspection solutions .”
The MTA is now calling on a wellintegrated commitment from the whole nation to help industry realise its potential , ranging from business leaders and academics to policymakers so crucial in developing a cross-party industrial strategy .
The recent Advanced Manufacturing Plan - accompanied by support worth £ 4.5bn - has been welcomed as a step in the right direction and an important vehicle in helping to cultivate the new technologies and industries being born , such as electrification , lightweighting , less carbon intensive materials and renewable energy .
Introducing new measures that increase exports should also be a priority and there is an unprecedented opportunity to deliver critical sovereign capabilities from public health to defending our realm .
For further information , please visit www . mta . org . uk
72 PECM Issue 69