The UK has slipped out of the top ten manufacturing nations for the first time. Make UK reports the country is now in 12th place, down from eighth the previous year.
This shift is due to a “redrawing of the contours” of the global economy. Russia and Mexico have surged ahead, securing seventh and eighth spots, respectively.
UK Falls in Global Manufacturing Rankings
The UK has fallen out of the top ten global manufacturing nations for the first time. According to Make UK, Britain occupies the 12th spot in the 2022 rankings, dropping from eighth place the previous year.
This change is seen as a result of a “redrawing of the contours” of the global economy. Nations like Russia and Mexico have moved ahead of the UK, now sitting in the seventh and eighth positions.
Impact of China and Russia
Mexico’s rise in the rankings is largely attributed to increased investment from China. These investments have boosted Mexico’s manufacturing capabilities significantly.
In Russia, a surge in defence production has contributed to its new position. Manufacturing now makes up 6% of Russia’s GDP, helping it climb into the top ten lists.
Economic Contributions and Employment
The UK’s manufacturing sector still plays a vital role in the economy. It contributes £217 billion to the nation’s output and provides around 2.6 million jobs.
Despite its fall in global rankings, the sector remains a cornerstone of the UK economy. However, industry leaders stress the need for a “long-term industrial strategy” to revitalise the sector.
Regional Manufacturing Hubs
Northwest England remains the largest manufacturing hub in the UK. The region employs 330,000 people and generates £29.5 billion in output.
Other regions also contribute substantially to the nation’s manufacturing output. However, the lack of a cohesive industrial strategy is seen as a significant downside.
Inconsistent policymaking by the previous government has been cited as a factor hindering growth. Critics argue that a stable and long-term plan is essential for future success.
Leadership Perspectives
Stephen Phipson, CEO of Make UK, calls the absence of a cohesive industrial strategy the UK’s “Achilles heel”. He advocates for a strategy that would elevate manufacturing to 15% of the national economy.
Phipson emphasises that major economies like Germany, China, and the US have long-term strategies. This approach underscores the critical role of industrial bases in their broader economic success.
Paul Drechsler, a former president of the CBI, shares similar sentiments. He points to political U-turns, inconsistent funding, and lack of stability as major hindrances to growth.
Call for Policy Reforms
Industry leaders urge the UK to adopt a consistent, independently monitored industrial plan. A cross-party consensus is recommended to avoid pitfalls of erratic policy changes.
Inconsistent policies have long plagued the UK’s manufacturing sector. Experts believe that a stable and long-term plan is essential for the sector to thrive.
Immediate and decisive action is needed to reverse the current trends. An improved plan could help restore the UK’s position among the top global manufacturing players.
Global Manufacturing Leaders
China and the United States continue to lead the global manufacturing rankings. These countries have maintained their positions as the first and second leading manufacturing economies.
Their long-term strategies and significant investments in the sector underscore their dominance. This approach offers valuable lessons for the UK.
With the right policies and investments, the UK could regain its place in the top ten. Experts believe that learning from these global leaders is crucial.
Sector’s Future Prospects
The UK’s manufacturing sector has the potential for growth and revitalisation. Industry leaders stress the importance of a cohesive strategy and consistent policies.
Experts are optimistic about the sector’s future if government actions align with industry needs. Steps taken now could pave the way for a brighter future.
A unified and long-term strategy is essential for the sector’s success. With the right focus, the UK could not only regain its lost ground but also achieve new heights.
In conclusion, the UK’s slip in the global manufacturing rankings highlights the urgent need for a
long-term industrial strategy. The sector remains a cornerstone of the economy, despite recent setbacks.
By adopting consistent policies and learning from global leaders, the UK has the potential to regain its lost position and achieve new heights.