Manufacturing in the United Kingdom

This article uses bare URLs, which are uninformative and vulnerable to link rot. Please consider converting them to full citations to ensure the article remains verifiable and maintains a consistent citation style. Several templates and tools are available to assist in formatting, such as reFill (documentation) and Citation bot (documentation). (September 2022) (Learn how and when to remove this template message)

The United Kingdom, where the

Manufacturing in the United Kingdom expanded on an unprecedented scale in the 19th century. Innovation in Britain led to revolutionary changes in manufacturing, the development of factory systems, and growth of transportation by railway and steam ship that spread around the world.^[4] Its growth was driven by international trading relationships Britain developed with Asia, Europe and the Americas, as well as entrepreneurialism, work ethic and the availability of natural resources such as coal. The main sectors were textiles, iron and steel making, engineering, and later ship building. Between 1809 and 1839, exports tripled from £25 million to £76 million, while imports nearly doubled from £28 million to £52 million during the same period; by 1849, exports were £124 million and imports were £79 million.^[5] In many industrial sectors, Britain was the largest manufacturer in the world and the most technologically advanced.^[4][6][7]

In the later part of the 19th century, a second phase developed which is sometimes known as the Second Industrial Revolution. Germany and later the United States, which made use of the American system of manufacturing, caught up and overtook Britain as the world's largest manufacturers in the early 20th century. Nonetheless, Britain remained one of the largest industrial producers. By the middle of the century, in 1948, manufacturing (including utilities and oil and gas extraction) made up 48% of the UK economy. In the post-war decades, manufacturing began to lose its competitive advantage and heavy industry experienced a relative decline. By 2013, the percentage of manufacturing in the economy (including utilities and oil and gas extraction) had fallen to 13%, replaced by services which had risen from 46% to 79% over the same period.^[8]

The trend of deindustrialisation in the United Kingdom is common to all mature Western economies.^[9] Heavy industry, employing many thousands of people and producing large volumes of low-value goods (such as steelmaking) has either become highly efficient (producing the same amount of output from fewer manufacturing sites employing fewer people; for example, productivity in the UK's steel industry increased by a factor of 8 between 1978 and 2006^[10]) or has been replaced by smaller industrial units producing high-value goods (such as the aerospace and electronics industries).^[11]

How the manufacturing sector is accounted for has however changed as part of manufacturing companies providing services and for those supplying it, so the actual size of the sector will vary in size according to the criteria in question.^[12]

Recent trends

Although the manufacturing sector's share of both employment and the UK's GDP has steadily fallen since the 1960s, data from the OECD shows that manufacturing output has steadily increased in terms of both production and value since 1945. A 2009 report from PricewaterhouseCoopers, citing data from the UK Office for National Statistics, stated that manufacturing output (gross value added at 2007 prices) has increased in 35 of the 50 years between 1958 and 2007, and output in 2007 was at record levels, approximately double that in 1958.^[13]

Manufacturing employment has fallen faster in the UK since 1998. This started with manufacturing productivity flatlining from 1993 to 1997 and a rise in pound sterling. PricewaterhouseCoopers presumed that British manufacturing was less able to adapt to new production immune from Asian competition. Since 1993, the UK has also invested less in R&D and adaptation than its OECD competitors.^{[citation needed]} However, manufacturing remains an important sector of the modern British economy and the UK is one of the most attractive countries in the world for direct foreign industrial investment in 2003.^[14]

Yet, as of 2019^[update], the manufacturing sector was worth £393 billion or $514 billion in the United Kingdom, according to office of national statistics.com.^{[full citation needed]}

Manufacturing has recently been rising in the UK with increased domestic demand with a fall in the pound too. The UK leaving the EU could lead to increased opportunity for access to cheaper raw materials from Africa and South America.^{[citation needed]} More firms returning their production to the UK have also bucked the trend, which might continue as many companies reassess their investments in China, a process sometimes known as on-shoring.

Engineering

Engineering and allied industries comprise the single largest sector, contributing 30.8% of total Gross Value Added in manufacturing in 2003.^[