In 2011, George Osbourne, Chancellor of the Exchequer declared: “we want the words ‘Made in Britain’ to drive our nation forward” in an address aimed at rejuvenating Britain’s manufacturing industry. Businesses in this sector stagnated and declined during the recession having previously been a driving factor in Britain’s economic growth. Between 2010 and 2012, British manufacturing was on the up again as a weak pound and growing consumer habits began to kick-start the industry, however that growth has not been sustainable and recent statistics have revealed that manufacturing in Britain is beginning to stagnate once again.
To provide some context, the manufacturing industry accounts for 10% of the United Kingdom’s economy, with the vast remainder being made up by the services sector. In 2015, for the first time in years, British manufacturing failed to contribute to the country’s economic recovery as its growth leant on the fragile services industry. Essentially, a sector which has been a staple of the UK’s economy for centuries is continuing to wane amidst global economic uncertainty and burgeoning Asian markets.
With 2016 well under way, a variety of factors threaten to afflict a stagnating sector. Government policies including the impact of the living wage, interest rate hikes as well as the EU referendum have hardly signalled that now is the time to expand for British manufacturers and instead have only served to increase uncertainty around the industry. Evidently, rather than the words ‘Made in Britain’ driving it forward, the economy is increasingly propped upon the services sector which is currently very unstable.
Such uncertainty has claimed some British Industries such as steel amid fierce competition with burgeoning Asian markets. However, this is not the case for all British manufacturers with some bucking the trend and posting growth in the past 12 months. Aerospace, motoring as well as many other industries continue to thrive with British manufacturers leading the market.
As companies continue to innovate with marketing strategies, greater value is placed on the value of networking and being able to interact with clients face-to-face. As such, the displays industry is one which continues to grow and British manufacturers are at the forefront to provide for leading organisations travelling to events across the world. For businesses both big and small seeking to expand their audience, trade shows and exhibitions have become crucibles for organisations looking to foster new relationships and meet prospective customers.
While there is clearly a growing disproportion between Britain’s manufacturing and services industry, it is not all doom and gloom for advocates of ‘Made in Britain’. As staple British industries decline, smaller businesses are stepping up as leaders in their respective markets in the face of growing global competition.