Yesterday the Business Secretary, Sajid Javid, addressed the annual EEF National Manufacturing Conference and explained why he is personally committed to backing manufacturing.
It is no secret that the global economy currently faces a number of serious challenges. Also addressing the audience was The Financial Times’ Chief Economics Commentator Martin Wolf, who set out the global outlook: from the slowdown in China, to recession in South America, to a global savings glut to the uncertainty caused by the UK’s EU referendum.
The Business Secretary, however, was positive in his speech, praising manufacturers as jobs and growth creators, pointing out that exports are on the rise and UK manufacturing has a workforce of almost 90,000 employees, a significant number of which are in ADS’ sectors – aerospace, defence, security and space. He particularly highlighted the success of the aircraft industry, citing ADS figures that delivery numbers are up 44% since 2010. Last year was a record year for aircraft production; 1,397 aircraft came off the production line globally in 2015, which was worth up to £23bn to the UK economy. This record rise in delivery rates reflects growing global demand and the benefit of long term investment in skills, technology and productivity.
Javid went on to discuss the ‘fourth industrial revolution’ and the seismic changes undergoing the manufacturing industry. Last year, McKinsey said that 45% of current jobs could be adequately performed by technology that already exists. This poses both opportunities and risks to competitive industries such as aerospace, defence, security and space, where the adaption of new technologies and developing new high-tech skills of employees will be essential.
Following Javid was the Deputy Labour Leader, Tom Watson, whose speech also focused on this need to make technological change our ally. Business is already fully aware that robotics and automation are profoundly affecting production methods but the imminent widespread use of driverless cars, as Watson pointed out, will have profound policy implications – potentially greater efficiency of our existing road networks but also the massive displacement of transport jobs. With the internet of things already a reality and productivity high on the agenda, Watson urged industry to address the challenge head on in order to secure the future of professions and the skills gap.
There was a strong sense of ambition in yesterday’s audience, with the acceptance that there is significant change afoot. That said, UK manufacturers are already looking at ways to meet these challenges so the country can continue to maintain its global competitive position.
