Manufacturing no longer big enough to sustain UK economic recovery
News Article - 16 May 2011
Category:
Industry
A report published this week indicates manufacturing is no
longer the driving force behind the UK's economic recovery.
The Work
Foundation think-tank has urged the Government to place greater
emphasis on business services such as accountancy, legal advice and
information technology that are now regarded as the "life blood" of
the nation's recovery from economic recession.
Accounting alone provides a fifth of the nation's output and 11
per cent of jobs.
Report author, Andrew Sissons, said: "Manufacturing will
continue to be hugely important, but it is unwise to pin all hopes
for recovery on this sector to the detriment of the UK's greatest
economic strength.
"Like it or not, business services have become the lifeblood of
the UK's knowledge economy and account for twice the output of the
manufacturing sector."
This viewpoint will cause frustration amid the ranks of the
Coalition Government, with Chancellor George Osborne having made
manufacturing a pillar of the nation's economic growth strategy in
the recent Budget.
Manufacturing
business systems have helped organisations revolutionise the
efficiency of production planning to maximise profitability and
minimise waste, in an effort to maintain a position of strength
within the Government's economic growth strategy.
Over £200 million was pumped into seven brand-new
technology innovation centres with a focus on high-value
manufacturing with further funds ear-marked for future
developments.
However, Sissons has called upon the UK Government to encourage
businesses to invest in and evolve their knowledge base.
"So far, there has been much government focus on high-speed rail
and super-fast broadband, but this will not create jobs by
itself.
"Business services are the real infrastructure of the knowledge
economy - they create value by moving knowledge around the economy
and create an environment in which other enterprises can thrive.
Policymakers need to get to grips with this before it is too
late."
Article keywords:
Manufacturing business systems, manufacturing software, production software, Work Foundation think-tank, business services, accountancy, legal advice, information technology, economic recovery, Andrew Sissons
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