The document discusses trends in UK manufacturing and trade. It notes that while exports and imports reached record levels in 2013, the growth in trade has slowed since 2010-2011 due to ongoing difficulties in many economies. It also discusses challenges currently facing the manufacturing sector like reduced output and export orders, and falling prices and margins. The document emphasizes that UK manufacturers must continue innovating, developing new products and adapting business models to add value, and also become more international to stay competitive globally.
The document discusses trends in UK manufacturing and trade. It notes that while exports and imports reached record levels in 2013, the growth in trade has slowed since 2010-2011 due to ongoing difficulties in many economies. It also discusses challenges currently facing the manufacturing sector like reduced output and export orders, and falling prices and margins. The document emphasizes that UK manufacturers must continue innovating, developing new products and adapting business models to add value, and also become more international to stay competitive globally.
The document discusses trends in UK manufacturing and trade. It notes that while exports and imports reached record levels in 2013, the growth in trade has slowed since 2010-2011 due to ongoing difficulties in many economies. It also discusses challenges currently facing the manufacturing sector like reduced output and export orders, and falling prices and margins. The document emphasizes that UK manufacturers must continue innovating, developing new products and adapting business models to add value, and also become more international to stay competitive globally.
presents an analysis of productivity growth in the services sector. It suggests that the recent weakness of services productivity is a consequenc
The value of trade in goods grew steadily from the beginning of 2007 to mid 2008. The onset of the global economic downturn in mid 2008 affected the economic performance of the UK's major trading partners, and the value of both UK exports and imports fell sharply until Q2 2009. Growth in the value of trade in goods resumed from mid 2009 with improving global economic conditions. However, the value of both UK exports and imports has remained flat since mid 2011 with the continuing difficulties in many economies.In 2013, the deficit on trade in goods narrowed by 0.9 billion to 107.8 billion (annually). The level of exports increased to a record 304.7 billion in 2013, up 1.4% from 300.5 billion in 2012. However, the rise in exports was accompanied by an increase in imports to a record 412.5 billionin 2013, up 0.8% from 409.2 billion in 2012. Despite these record levels of exports and imports, annual growth in the value of trade in goods has slowed considerably since 2010 and 2011.
In the short term, the UK ME sector remains exposed to the global downturn. According to the industry figures, the following key short-term trends are currently affecting the industry: A marked reduction in manufacturing output and export orders. Manufacturing Purchasing Index (measuring business activity) is at a record low. Export orders are no longer sufficient to compensate the manufacturers for domestic weakness. Domestic and export prices and margins are falling. Increased cost of financing. Cash-flow problems are adversely impacting investment plans. Widespread job cuts, with the risk of even deeper cuts within the sector. The above short-term trends will inevitably determine the long-term outcome and future landscape of the ME sector in the UK. Manufacturing firms in the motor vehicle and electronics segments are expected to experiencethe biggest slowdown. At present, much work remains to be done both by the government and organisations within the ME sector to tackle and address the short-term challenges, and to ensure that their organisations, and the ME sector as a whole, not only survives but emerges fitter for the next cycle of economic growth. The most important strategic trend that has been affecting the UK manufacturing sector is the growth of global value chains, as UK companies have began to increasingly source goods and services from across the globe. This has also meant that the UK MEfirms (being in the relatively higher cost economy) are increasingly competing through differentiation of their products and supporting services instead of price. Consequently, manufacturing firms are placing increased emphasis on their implementation of manufacturing technology, investment in R&D, aftermarket services, design and branding, as well as information and communications technologies (ICT), and further investment in people and skills development. In addition, proactive action on achieving the EU and international targets for carbon reduction is creating new challenges and opportunities for the ME sector. Hence, a number of trends are emerging along the following six axis: Change in Government policy; Integration of global supply/value chains; Increased information technology exploitation; Development of human resources and wider competencies; Need for renewed focus on R&D and innovation enablers; Transition to a low-carbon economy.
This means firstly that UK manufacturers must continue to innovate. They must develop and bring to market new, more sophisticated and better quality products and adapt their business models in ways that add further value to the manufactured products which they supply. By responding quickly to the new opportunities created by predicted changes in global demand and the emergence of new technologies, UK manufacturers can exploit first mover advantage, obtaining a larger share of new product and geographical markets. At the same time, UK manufacturers must also continue to become more internationalised. By engaging in international markets,UK manufacturers can keep at the forefront of ongoing developments in innovation and technology through greater exposure to new ideas and knowledge and access to customers/ suppliers and skills around the world. The remainder of this paper considers the extent to which UK manufacturing is well placed to continue competing effectively in the global economy and take advantage of the new opportunities which may created by anticipated changes in long-term global demand.
Innovation is defined as the successful exploitati on of new ideas. It can involve the development of new designs, concepts, technologies, products, processes, business models, organisation structures and management practices. Innovation also encompasses much more than just research and development activity. Innovation has a key role to play in promoting productivity growth through the development of more valuable products or services, the development of new technologies, processes and business models which increase firm-level efficiency, and through the generation and diffusion of new ideas and knowledge. B
Informational failure around new manufacturing ideas and processes Some firms, particularly small and medium sized enterprises (SMEs), may experience difficulties accessing knowledge of the latest industrial ideas, technologies and practices or finding professional support and advice on how these can beapplied to their business. For example, in manufacturing there is evidence to suggest that many manufacturing firms are not aware of the economic and financial benefits of greater automation
Some of the research undertaken in the UK would not be commercially exploited to the same extent without the Intermediate Sector. It fills a crucial role between academia and industry by enabling the transfer of raw knowledge from academic research into a problem solution that can be well understood by all levels of management within industry.
There are several phases of innovation, from initial research, through development, knowledge and technology transfer, to new technology monitoring, exploiting opportunities for new applications, culminating, for the enterprise, in new product development and introduction