Despite more worrying news about the state of the British manufacturing industry hitting the headlines recently, Corrotherm remains positive about the future.
It’s hard to escape the news of doom and gloom that is overshadowing the economy at the moment, and recent data from the Office of National Statistics has certainly not helped to cast a positive light over the manufacturing industry. The figures show that production has dropped for a second successive quarter, putting the industry into recession – for the third time in a decade. Industrial production (including manufacturing, North Sea oil and gas, supply of services, etc) is 10% lower than it was when the UK entered recession in early 2008, according to analysis in an article in The Guardian. This data is backed up by the Markit/CIPS manufacturing Purchasing Managers' Index, which also highlights a downturn in manufacturing output.
While there are numerous reasons for this recession, such as the current slowdown in the gas and oil industry, less domestic demand and fewer export orders, one contributing factor is the uncertainty ahead of the EU Referendum in June. We have been following the debates with interest, and thinking about the future impact of the result, whichever way it goes.
However bleak a picture these figures are painting, we prefer to look on the bright side. While the UK industry is experiencing a downturn, it remains in a strong position in the global market. A recentblog from the EEF, shows that Britain is the 7th largest manufacturing nation, a position that we’ve maintained since 2010. This is a strong place to be and is a drop of only one position since 2005 – the expanding industry in South Korea means that the country has moved up the rankings. The blog also details the decline in manufacturing throughout the world – the UK’s own drop is in line with the global trends, so it is not an unexpected result.
Corrotherm CEO Jan Ward continues to remain positive about the future, saying: “As new cost-effective and efficient methods of production are introduced, for example the rise in the use of additive manufacturing that we recently covered on the blog, plus the continuing need for sources of energy, the industry will recover and prosper. We also need to look to encourage the younger generation to embrace engineering, as they will be the ones driving the industry forward.”
The UK manufacturing industry is simply changing and adapting. A 2014 report from the Office of National Statistics outlines the way that the manufacturing industry contributes to the economy as a whole and how that has developed over the last 60 years. It suggests that this is due to a number of different factors, including improved production methods, better wages for workers, more investment in research and development, and a more integrated global economy. The industry has had to stay on its toes to meet the rise in international competition from emerging economies.
At Corrotherm we believe in always looking forward and ensuring that we’re ahead of the game – keeping one ear to the ground for the latest industry developments.
