Andrew Smith
Main Page: Andrew Smith (Labour - Oxford East)Manufacturing in the UK
Andrew Smith Excerpts(10 years, 4 months ago)
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Mr Iain McKenzie (Inverclyde) (Lab)
It is a pleasure to serve under your chairmanship, Mr Streeter. I thank the Minister for taking time out of what must be a busy diary to come to this debate. I am delighted to have secured this debate because I believe that manufacturing plays a very important part in the UK economy, and I wish to see manufacturing encouraged and assisted to grow and prosper in every region of the UK.
Today, the manufacturing industry employs some 2.6 million people in the UK, which is just 8% of all jobs in the country. In 2011, manufacturing accounted for 11% of national economic output, some £145 billion. Still, manufacturing comprises only 12% of the UK’s economy, compared with more than 23% in Germany. As we are only too aware, manufacturing in the UK has underperformed compared with the service sector for many years—one reason being that manufacturing output declined particularly sharply during the recession and, after a short period of growth, again fell in March 2013 compared with March 2012. In the past few months, however, some manufacturers have started to grow and to increase their market share once more. Such businesses have embraced invention, innovation, quality and design, which I will discuss further as I make progress.
Mr Andrew Smith (Oxford East) (Lab)
I am grateful to my hon. Friend for giving way and I congratulate him on securing this enormously important debate. It is important to celebrate the success of our leading-edge manufacturers, so will he join me in congratulating MINI, which has its plant in my constituency, on its sales going above 300,000 last year, which is up 6% on the year before? That helps to make my hon. Friend’s point that, with the right investment, the right product, the right work force and partnership between trade unions and management, we can do great things.
Mr McKenzie
I could not agree more with my right hon. Friend. That example underlines what I am about to discuss, which are quality, design and improving market share. MINI is a true example of that.
The success of such businesses highlights that, without a strong manufacturing base, there can be no rebalancing of the economy, which we are told is a priority for this Government. Great importance should be placed on invention, quality and design in manufacturing. The importance of development to creating a product cannot be under-stressed. Research and development are essential to build businesses and to dominate markets.