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UK MANUFACTURING2016 / 17, THE FACTS:

10% OF GVA45% OF UK EXPORTS

68% OF BUSINESS R&D

2.7MILLION EMPLOYEES

OF BUSINESS INVESTMENT14%

...IN THE WORLD

UK MANUFACTURERSOUTPERFORM ONJOB CREATIONUK manufacturers have been creating jobsManufacturing employment 2015 . 2010 = 100

Source: OECD

US UK GERMANY CANADA JAPAN ITALY FRANCE

110

105

100

95

6China

Export value (£bn)

1. 40.92. 26.0 3. 14.04. 11.35. 10.16. 9.37. 8.58. 7.59. 7.010. 6.4

Source: uktradeinfo

UK MANUFACTURING – 4 THINGS TO KNOW

BRITAIN IS THE 9TH LARGEST MANUFACTURER...

Manufacturing continues to pay well – average pay in manufacturing is still higher and has increased faster than services

Manufacturing is securing Britain’s place in the world – almost a quarter of factory output is bound for overseas customers

Manufacturing is the sector to beat on productivity – in the past decade manufacturing productivity as measured by output per hour has grown 3 times faster than the whole economy

Manufacturing is set for change – with industry gearing up for the 4th Industrial Revolution (4IR)

1

210

89

5

3

4

United States

Germany

Switzerland

ItalySpain

France

Irish Republic

7Belgium

The Netherlands

UK’s top 10 export destinations for manufactured goods, 2015

Food and drink

Chemicals and pharmaceuticals

Rubber, plastics and non-metallic minerals

Metals

Electronics

Electrical equipment

Machinery

Transport

Other manufacturing

Food and drink

Chemicals and pharmaceuticals

Rubber, plastics and non-metallic minerals

Metals

Electronics

Electrical equipment

Machinery

Transport

Other manufacturing

WHAT IS MODERNMANUFACTURING?Gross Value Added (GVA) by manufacturing sector Share of total (%)

Source: ONS Blue Book 2015

Source: ONS

17%

14%

8%

12%5%6%

14%

21%

3%

WHICH SECTORS AREDRIVING MANUFACTURINGINNOVATION?R&D expenditure by manufacturing sector as a share of total manufacturing 2014

1%

3%

3% 3%

35%

7%13%

33%

2%

Average earnings Mean annual gross pay (£)

MANUFACTURERS INVEST IN THEIR PEOPLE

Source: ASHE, ONS 2015

Source: ASHE, ONS, EEF analysis

Source: UKCES Employer Perspectives Survey 2014: UK Results

Services

£26,825

Whole economy

£27,607

££ £Manufacturing

£31,489

Proportion of companies that currently have or offer formal apprenticeships

Manufacturing Whole economy Services

Change in average earnings since 2013

3%

1.6% 1.4%

Manufacturing 19%

Whole economy 15%

Business and other services 14%

Wholesale and retail12%

Largest sector:

Largest sector:

MANUFACTURING IS THE BEATINGHEART OF THE ENTIRE UK

South West13.1bn

235 11.5%

8%

Scotland14bn

208 11.3%

7.7%

Northern Ireland4.9bn

89 15%

10.3%

Wales9.9bn

165 18%

11.3%

North West23.7bn

346 15.8%

9.6%

West Midlands16.4bn

323 14.5%

11.5%

Largest sector:

Largest sector:

Largest sectors:

Largest sector:

Largest sectors:

Largest sectors:

East Midlands

East of England

South East

Source: National Statistics

16.4bn

269 18.1%

11.5%

Workplace based GVA in manufacturing at current basic prices

Key Manufacturing output (£bn)

Number employed in manufacturing, 000s

Manufacturing as a % of regional employment

% of regional output

£

19.2bn

Largest sectors:

268 8.3%

Yorkshire and Humberside

16.2bn

285 16%

10.5%

4.7%

16.7bn

235 13%

7.5%

North East

7.1bn

117 15.5%

9.8%

London

8.6bn

141 2.6%

2.9%

Largest sectors:

Largest sectors:

Largest sectors:

EEF is the voice of UK manufacturing and engineering. Everything we do is designed to help our industry thrive, innovate and compete. Our membership and business services packages deliver expert support to thousands of companies in the UK, helping them to improve processes and productivity, maintain safe workplaces and attract, develop and retain skilled, productive and flvexible workforces.

And, because we understand manufacturers so well, policy makers trust our advice and welcome our involvement in their deliberations. We work with them to create policies that are in the best interests of manufacturing, that encourage a high growth industry and boost its ability to make a positive contribution to the UK’s real economy.

www.eef.org.uk

EEF Economists blog www.eef.org.uk/blog

@EEF_economists

www.linkedin.com/company/eef

We are fully committed to supporting manufacturers and we appreciate you are looking for something different from your bank. The complex nature of your business requires support from a bank that understands your industry, will deliver on its promises and believes in building long-term relationships.

We will work with you to find a finance package that meets your needs. We have a range of products available to help you manage your day-to-day cash flow, purchase essential equipment, invest for growth and mitigate financial risks when trading in both domestic and international markets.

Underpinning this is the global strength of the Santander Group. With 5 million business customers worldwide, we have both the expertise and the reach to enable manufacturing businesses to expand their business and grow their balance sheet.

Lending is subject to status and lending policy.

www.santandercb.co.uk/manufacturing

Mechanical Flower image, taken by Siobhan Lock at Selwyn’s Seaweed in Swansea, runner-up in the young photographer category of the EEF Photography Competition 2015.