Crime prevention

That impression is constantly underpinned through the regular trotting out of manufacturing's falling proportion of GDP. The fact that the proportion of our economy concerned with manufacturing has shrunk leads people to believe that manufacturing output itself has shrunk; the fact that the number of people employed in manufacturing is fewer similarly adds to that impression; and the fact that we own many things not having recognisably 'British' names does so, too. But it is still true that manufacturing output grows over the long term, in absolute terms – it just grows more slowly that other parts of the economy and so becomes a smaller proportion. Part of that is because international competition keeps the market price for goods low, while massive productivity increases have been made in keeping manufactured goods prices low, because of such competition. Indeed, in the ten years from 1997, UK manufacturing productivity climbed by 50 per cent, observed Richard Lambert, director-general, CBI, recently – but that, regrettably, does mean fewer people to do the same thing, of course. And while the MPs spoke in rather vague terms about the move to high value manufacturing in the UK, Mr Lambert pointed up the UK's performance more quantitatively. Twenty-five per cent of the UK's exports of goods are defined as high-tech, compared with 22 per cent for the US, 15 per cent for France and 11 per cent for Germany, the CBI director-general highlighted. Returning to the House of Commons, it was underlined that the UK is the sixth largest manufacturing nation; that manufacturing contributes some £150 billion to the economy, accounts for half of Britain's exports, employs 2.7 million directly, and is responsible for 75 per cent of the country's business research and development. Clearly a sector that is far from non-existent, it would appear. Interestingly, both Mr McFadden and Mr Lambert observed something more about manufacturing. It is about national identity, shape, pride and social cohesion, they variously highlighted. "That is why manufacturing is such a crucial part of our economic future," said Mr McFadden, while Mr Lambert offered that, while we should not be nostalgic about "past glories...we have to cherish and preserve our heritage of engineering and design excellence, and our manufacturing skills. It would be a crime to let this go". And so is talking it down. First published in Machinery September 2009