Manufacturing
News: Manufacturing Strategy: The Government's Response to the Third Report of the House of
Commons Trade and Industry Committee: Session 2001-2002-07-24 is now
available (24/07/02).
News: The Government's
Manufacturing Strategy has been published (16/05/02).
Manufacturing accounts for about 20 percent of GDP and employs about 4 million people in the UK. Over 60% of our exports are manufactured goods. This is a significant contribution to our national economy and to the creation of wealth needed to afford us the quality of life we seek. Manufacturers, therefore, play an important role in our economy and in the everyday lives of people - both those they employ and those who use their products. Manufacturers and their products are indispensable.
New technologies are transforming every product and service, every part of the production process and every sector of the economy. The best British manufacturing firms are world class enterprises, embracing new technology and using it to transform their business, helping to promote enterprise and raise productivity. We have world beating sectors in areas such as car manufacturing, aerospace, pharmaceuticals, and the electronics industry and food production.
There are good opportunities for manufacturing businesses that understand the need for continual innovation, forward-planning and investment in skills and capital. Britain is a good place for manufacturing industry. Our task is to ensure that every UK manufacturer can meet this challenge.
Manufacturers contribute to what has become a knowledge driven economy. Knowledge and know-how have always been linked to manufacturing. Knowledge now plays an even greater role and has become the main source of competitive advantage. Access to raw materials, and other traditional factors of production and sources of comparative advantage (finance, premises, manufacturing equipment) has become much easier around the world. The most significant feature now is the knowledge and know-how people use to apply these factors in a creative, imaginative and innovative way to achieve competitive advantage. British manufacturing will compete not by being low cost, but by adding greater value through our skills and expertise.
The recently published findings of the  Foresight Manufacturing 2020 exercise [1.1Mb] have indicated that:
- Manufacturing will remain of major importance to the UK economy.
- Manufacturing is changing - and redefining itself as a provider of lifetime service around a manufactured product.
- Much remains to be done to secure the UK's position in what will be a European manufacturing 'competition' - but the UK can succeed.
The Government has a clear role to play in helping companies face the challenges of globalisation, technology and varying states of the business cycle. It can help businesses to become more productive - and to innovate and cope with change successfully.
The Government's manufacturing strategy aims to assist manufacturing
sectors to fulfil their potential in the UK. It identifies seven
pillars of activity for Government, companies and the workforce to
build on strengths and remedy or overcome weaknesses:
- Macroeconomic stability
- Investment
- Science and innovation
- Best practice
- Skills and education
- Modern infrastructure
- Right market framework
The reorganisation of DTI has given a sharper focus to our support for manufacturing. We are becoming much more customer focused. We are clearer about how we can create effective partnerships with our key stakeholders - businesses, unions, RDAs etc. We are looking to involve customers more closely in our policy making.
The Manufacturing Advisory Service
The Government believes that strong manufacturing is essential to a prosperous economy. However, there is a need to make external expertise and skills easier to access. SMEs would benefit from affordable advice. Seeing the results of investment in the latest manufacturing processes and technologies would also be beneficial. The
Manufacturing Advisory Service addresses these needs. It provides easily accessible assistance from experts to enable SME manufacturers to improve productivity.
The service is a partnership with the Regional Development Agencies (RDAs) and the Small Business Service (SBS) and its network of Business Links (BLs) in England, and with the Welsh Development Agency for coverage in Wales.
The two main components of the service are:
The regional centres provide hands-on advice and assistance with the wide range of issues about technology and manufacturing best practice which manufacturers face. Experienced experts are available to diagnose problems and provide advice tailored to the circumstances of individual firms. The service also helps clients to access specialist sources of expertise within or outside the region.
The centres of expertise will provide a national network of specialist advisers for the regional teams to draw upon.
What the Manufacturing Advisory Service does:
Communicates with companies to enable them to take advantage of the networks of expertise.
Supplies practical help. Assistance is available in the application of established technology, methods and skills relating to the manufacturing process. Experts assist manufacturers to exploit the full benefits offered by best practice and up to date technology.
Assists with technology transfer. We want to help companies to benefit from our world class science base, to make sure that "discovered in Britain" becomes "Made in Britain".
Develops manufacturing skills, including sign-posting to sources of training and new skills.
Develops and disseminates best practice. Promotion of the use of best practice is a key aspect of the Manufacturing Advisory Service. Much will come from contact between the centres of expertise and the regional centres for manufacturing and manufacturing companies. The Service will also build links with other industry fora.
Develops Networks of Expertise at regional and national level to signpost the right sources.
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