Manufacturing Performance 2007-8

Manufacturing growth in 2007

• EEF’s business trends survey shows the best conditions for manufacturing in ten years with rising levels of output and new orders matched by expanding employment levels.
• Investment intentions this year have been the strongest since 1995.
• The number of companies reporting improving profitability has risen from -4% in 2003 to 34% in 2007.

Manufacturing’s contribution to the economy

• There are 2.9 million people employed in UK manufacturing and it is responsible for 55% of UK exports.
• Manufacturers account for 75% of R&D expenditure in the UK.
• With growth of 2.9%, manufacturing productivity continues to outpace the rest of the economy.

Preparing for the economic challenges of the future

• Despite a potentially difficult future economic outlook, confidence in manufacturing and engineering remains strong and output is expected to continue to grow in 2008.
• Almost seven-in-ten companies expect the UK to remain their prime location for production and assembly over the next five years.
• Companies are constantly exploring new ways of responding to international competition with 39% citing new market entry as their top strategic priority and 71% increasing their innovation activity.

Members who are registered on our website can download the report in full from the downloads section of this page