CBI calls for manufacturing strategy

manufacturing, which accounts UK for nearly two-thirds of all UK exports, deserves support, says the CBI. It points to the relative strength of sterling against the euro, a lack of clear manufacturing strategy and the increasing burden of legislation as urgent problems the government should be addressing.

The CBI is lobbying trade secretary Patricia Hewitt to produce a new manufacturing strategy in a bid to stem the sector's long-term decline.

John Cridland, CBI deputy director general says: uA strategy should include a vision for manufacturing, combined with commitments to create a stable macro-economic environment, assess all legislation for its impact on manufacturing, develop a tax framework that encourages research, innovation and investment, identify ways of building on the success of key sectors and ensure the UK has the skills to meet the needs of future manufacturing."

In an environment where services are often valued beyond the ability to make things, the CBI points out the "hard facts" that 86 per cent of all goods exported from the UK are semi-manufactured and finished manufactured goods.

"Manufacturing is vitally important to the UK economy in terms of value of trade exported - crucial as we pay our way in the world," says the CBI. But it also points out: "Manufacturing is in the midst of significant structural change. This situation is not unique to the UK. The increasing shift towards both sourcing from and relocating to low-cost countries is a trend faced by all developed manufacturing economies.

"To counter this we need a strong DTI that is championing the cause for manufacturing right across government and beyond. There is limited time for action, if there is not to be an irrevocable shift of our manufacturing base overseas.

"We are reaching the point where there is a real danger of the UK manufacturing base shrinking below the critical mass required to sustain the skills base and necessary range of component suppliers to support manufacturing."

At risk are the jobs of 4m people directly employed in manufacturing and, because all manufacturing organisations make use of design, marketing, accountancy and legal professions, a further 2.4m service sector jobs. "Such linkages should be recognised as a source of competitive advantage for UK manufacturers," says the CBI.

More details 104