The UK Manufacturing industry has posted encouraging growth figures today.  UK manufacturing has outpaced any other European economy in what is now an established trend.  In fact, according the figures and as commented upon in UK publication ‘The Manufacturer’ the UK is now on track to break into the top 5  in the world by 2021.  But you probably wouldn’t know that if you only watch UK mainstream media

Currently the 8th largest manufacturer in the world, UK manufacturing has continued to outperform expectations having already moved up a place since the 2016 Brexit referendum.

Q1 and Q4 figures below:

However, you will see little reporting of some of the big gains made by UK manufacturing in UK mainstream media.  Toyota’s decision to invest heavily in the production of engines for electric cars in the UK, in a major win for the UK car industry, have been only covered in a most cursory way, yet this investment is extremely significant for the UK.   Whereas, the decision to close down what was an ‘end of life’ production line in the UK was assigned as a result of Brexit, even against the comments of the CEO of the company concerned.  Facts have had little merit in UK mainstream news since for almost 10 years.

Forecasts now show Britain’s manufacturing industry continuing to accelerate past the Eurozone countries as figures from the Eurozone continue to show some nations, including Germany, and others very close to having to declare an official recession with manufacturing often among those sectors suffering the most.  Non Euro zone EU countries continue to outpace those in the monetary union in a trend, also, predicted to continue.

Yet very strangely for those that follow the actual facts surrounding international trade, there is a perception that manufacturing does not happen in Britain.  A strange misconception largely driven by the media and opposition positions.  Labour and Conservative has consistently traded places, repeating exactly the same mantra.  Something, almost impossible to use with any credibility at this point. 

Manufacturing contributes £6.7 trillion to the global economy and this news demonstrates, more than ever, the importance of the British manufacturing industry in a global context. 

In the UK, manufacturing makes up 11% of GVA and represents 44% of business exports while exporting 2.6 Million people. 

However, the dithering British government and Houses of Parliament continue to ensure that British manufacturing is at a serious competitive disadvantage. 

Where they should be resolving the matter and setting out a clear course against which businesses can plan, if necessary,  making assurances and laying out a vision of the advantages of staying in post Brexit Britain, they have kicked the can even further down the road and demonstrated utter incompetence.  Both parties have damaged the reputation and credibility of the country in a way which far outweighs any damage that any form of Brexit could possible do. 

As many in business have known for a long time.  Politicians rarely solve business problems.  By and large, they mainly cause them.

However, if there is one thing we can take away from these most recent manufacturing figures, it is that British manufacturing is robust and a serious actor on the world stage.  This does come along with some risk where government and big business are too close.  Ask Canada. 

Big business, particularly likes to find to advantage wherever it can.  No always with full disclosure.  One only has to look at the enormous sums paid to US senators for that. 

In many cases, to suppress wages and find means to degrade working conditions and entitlements required to fill jobs.   The temptation is always going to be there to overstate the need for more and more cheap labour to fuel Britain’s growth.  However, as Germany is now finding, this is not a sustainable solution if your ambition is to protect the rights of your workforce and increase the living conditions of your population   Driving wage attrition is not the only way to support industry. Competitive taxation, reduced bureaucracy and administrative overhead along with effective trade tariffs are arguably, far more effective tools in a free nations economic arsenal.