Manufacturing in good shape says CBI

THE UK manufacturing sector looks to be in positive shape as it heads towards 2011 competing reports suggest today.

Reports prepared by both the CBI and advisers BDO in conjunction with manufacturing organisation EEF, suggest the sector is set to lead the UK’s economic recovery during the next 12 months.

The reports will make welcome reading for the Government, which is pinning its hopes on a manufacturing-led revival to create the jobs needed to offset massive cutbacks in the public sector.

The CBI has published its Vision and Ambitions for UK Manufacturing, ahead of a widely anticipated Government framework for the sector and review of advanced manufacturing but it has urged the coalition to act fast and build on manufacturing initiatives in order to sustain growth.
 
John Cridland, CBI Director-General Designate, said: “UK manufacturing is in many ways the unsung hero of our economy. Big productivity gains in the past ten years have made it leaner than ever before, and it’s now well placed to lead the country’s economic recovery.
 
“To achieve this, however, the Government must act fast. It should build on the sector’s strengths, work with business to harness its innovation, and create a tax and regulatory environment that helps UK manufacturers drive up growth in productivity and exports.
 
“We want the Government to be ambitious: focus its support on the sectors with most export growth potential, and improve the UK’s competitiveness as a place to invest.”