Business Productivity Review - EEF submission

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Following our work with the manufacturing community on getting UK manufacturing productivity growth back on trend. We've submitted a response to the Government's call for evidence on business productivity. Key points:

  • In this submission we provide evidence on the challenges and opportunities for improving productivity growth across UK manufacturing. The key next step is for BEIS to turn the input from this call for evidence into something useful as part of the overall industrial strategy, the consultation stops short on this point but this is an important aspect.
  • Just over 7 months on from the industrial strategy white paper we are still awaiting the independent Industrial Strategy Council or more detailed guidance on sector deals, taking action on these will help to drive forward progress on improving productivity across sectors of the economy.
  • Manufacturing was the main driver of productivity growth and can be again, but getting from current productivity growth rates to back on trend will require a more disaggregated look at factors holding back performance.
  • The BEIS Business Productivity Review looks at some important things that can shift the needle, including technology adoption and leadership and management. However it also needs to look at fundamental characteristics of output-ecosystems/supply chains that could be improved and require government support. A firm level approach will miss these bigger opportunities.
  • In UK manufacturing the characteristics that can be improved include scaling up the size of firms across manufacturing sectors, a greater focus on improving productivity beyond the shop floor and more firms deriving their turnover from exports.

The video below summarises why productivity is so important.

Author

This person has now left EEF. Please contact us on 0808 168 1874 or email us at enquiries@eef.org.uk if you have any questions.

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