New statistics from Cranfield University’s enhanced manufacturing growth index reveal that the UK manufacturing sector is undervalued by £50bn and is worth £208bn. The uplift equates to a gross value added (GVA) figure of 13.5 per cent compared to 10.2 per cent GVA attributed to the sector by the office for national statistics.
The new figures take into account the industry’s increasing capacity to generate economic growth in such areas as design and support, in addition to just production.
Mike Thornton, Head of Manufacturing at RSM, said:
‘The report highlights that manufacturing is more significant to the UK economy than commonly quoted. This reinforces what many people in the sector already believed, and cements the UK’s position as a manufacturing powerhouse, despite economic, political and resource pressures.
‘In a challenging market, manufacturers continue to innovate and diversify to remain competitive, and it’s great to see an index that takes into account the value of key activity, such as product design and additional supporting services.
‘Whether it’s servitisation to deliver complementary services in tandem with traditional product lines or digitalising manufacturing and production methods, UK manufacturers are at the forefront of innovation – ensuring a more sustainable future for the sector, and ultimately the economic prosperity for the UK.’
RSM is a leading provider of audit, tax and consultancy services to mid-market manufacturers. The firm is supporting this year’s international festival for business and sponsoring the Made in the UK conference and awards to celebrate the most innovate and successful manufacturers, ranging from SMEs to internationally active organisations.