British manufacturing continued its climb up the global rankings as growth returned last year, according to facts and figures published today by EEF, the manufacturers’ organisation and Santander.
Launching the 2017 manufacturing fact card, the new data shows that Britain is now the 8th largest industrial nation with an annual output now worth $249bn, up from 9th place last year.
In the post-Brexit world, manufacturing will increasingly provide Britain’s link to the world, currently generating 44 per cent of total UK exports. The sector is also vital for the nation’s future source of income, undertaking some 70 per cent of total R&D by Britain’s businesses. Data around employment is equally impressive, with 2.6million people working within the manufacturing sector across the country.
The largest individual sector is food and drink while the chemicals and pharmaceuticals and transport sectors both account for 14 per cent of output each. It is these two sectors which also head up the manufacturing innovation league table, with ONS figures revealing that pharmaceuticals accounts for 34.4 per cent of UK innovation, and transport 33 per cent.
A reminder of the post-Brexit challenge is ever present as EU markets still dominate for exports, accounting for 48 per cent of manufactured exports in 2017q2. The UK’s largest single export destination is the United States, followed by Germany and France.
Commenting, Lee Hopley, Chief Economist of EEF said: “With government facing lots of major policy decisions on everything from our future trading relationship with Europe and the rest of the world to the detail of a long-term industrial strategy it is vital that they have the right industry facts at their fingertips. Our latest annual fact card reveals that manufacturing’s share of the economy remains stable at 10%, but the sector makes a much larger contribution to vital exports and innovation.
“With the focus on industrial strategy, this year we highlight the varying strengths we see across manufacturing sub-sectors, from the strong R&D performance of pharmaceuticals and transport to the high export intensity of machinery and chemicals.”
Regency supports a variety of manufacturing clients, with many taking advantage of our trade finance facilities along with our invoice finance services. We have seen an increase in our clients looking beyond the EU for both purchasing and sales.
If you’d like to find out more about alternative business finance facilities, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities can work for you.
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