OPINION JULY/AUGUST 2020
A brave new world
BY STEPHEN PHIPSON, CHIEF EXECUTIVE, MAKE UK, THE MANUFACTURERS’ ORGANISATION
UK manufacturing has undergone
significant changes since the 18th
century; from the first industrial
revolution to the emergence
of the fourth, the manufacturing sector
has remained the UK’s economic engine
and the world’s workshop. The sector has
continually reinvented itself in order to
adapt not only to the structural changes
and evolution of our economy but also
to the policy changes brought in by
successive governments.
Nonetheless, manufacturers have
proven themselves to be the ones creating
the new technologies of today and
designing the innovations of tomorrow.
They have continued to invest in their
people, allowing them to capitalise and
compete on a global stage, and in many
cases have provided the solutions to the
world’s biggest challenges.
Today’s challenge to position the UK
as a leader in the global marketplace, to
lead a green revolution to transition to Net
Zero and to inspire the next generation
of creators, makers and innovators, is no
different. In addition, as we seek to recover,
the UK economy will need manufacturers to
continue to step up and boost productivity,
to power economic growth and to deliver
shared opportunity in every region of the
UK. A digital, global and green future post
COVID-19 is possible, but it will require a
bold, brave and new vision for our economy
– one that puts manufacturers at its heart.
As the COVID-19 pandemic struck,
much like the rest of the economy, the
manufacturing sector was hit hard. Sales
and orders fell, domestic and global
supply chains came to a halt and staff were
furloughed, with redundancies expected
to follow across a range of industries.
On top of that, the OBR predicts that the
manufacturing, construction, retail, travel,
food industries and education sectors will
see the biggest long-term losses. However,
hygiene and social distancing restrictions
have also disrupted the services sector
in a manner that is likely to last for some
time, meaning the UK is now more reliant
on manufacturers to lead the recovery. It
is already notable how the ability to use
manufacturing in this time of national
emergency has proved vital.
Yet, despite the tough trading
conditions, the overwhelming majority
of manufacturers remained operational,
many repurposing their factories and
supply chains to produce vital medicines,
machinery, utensils and PPE for our
front-line staff, and supporting critical
parts of our economy and society with
vital food, drink and other necessities.
Manufacturers are also now leading the
way in implementing and demonstrating
best practice for our return to work.
This shows that the manufacturing
sector has a key role to play, both in our
recovery and in the digital, global and
green future we should be aiming for.
It is clear that the road ahead remains
bumpy for the foreseeable future. As
Make UK has set out previously in our
three-point-plan (https://bit.ly/2XwyK0z),
any meaningful recovery will take time.
Different parts of the economy, as well as
different regions, will recover at different
speeds, with export demands, consumer
tastes and business models changing to
make sense of the ‘new normal’.
This is why it is vital for government
to boost economic confidence and deliver
shared prosperity, and for manufacturers
to implement best practice and build
resilience. Despite the recent Summer
Statement by the Chancellor this may
require further action and Make UK is
calling for the furlough scheme to be
extended to key strategic industries that
will be vital to the economy of the future
(https://bit.ly/3fxwFrA).
History has shown us how a strong
industrial base provides the foundations
needed to create a prosperous society. It is
the manufacturing sector, with its versatile
and innovative industries, that stands ready
to rebuild our economy.
How can we ensure the UK manufacturing is in a position to lead the country’s recovery?
We want to hear from you. Email: chris.beck@markallengroup.com
10 www.manufacturingmanagement.co.uk
Negro Elkha /stock.adobe.com
Given the right support, the UK’s manufacturing sector can
lead the country’s recovery, and rebuild our global reputation
The manufacturing sector
stands ready to rebuild the
UK’s economy.”
/2XwyK0z)
/3fxwFrA)
/www.manufacturingmanagement.co.uk
/stock.adobe.com
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