The latest Manufacturing performance report paints a rather gloomier picture of the economy and the outlook for manufacturing than previous editions.
- After a strong performance in recent years, conditions in UK manufacturing deteriorated in the final months of 2008.
- Weaker demand across the world economy will leave new orders depressed during 2009, hitting investment plans and employment.
- But improvements in productivity and profitability have put manufacturers on a stronger footing ahead of recession.
- UK manufacturers make an important contribution to a balanced UK economy, and strategies to grow new markets, improve efficiency and increase innovation will sustain this contribution beyond the downturn :
- more than half of all exports and 1/7th of total UK output
- 2.8 million people employed directly in the sector and many more supported by manufacturing
- three-quarters of research and development expenditure