UK manufacturing ‘powering ahead’

The UK manufacturing sector is in rude health, thanks in large part to strong demand from overseas customers, an industry survey suggests.

The Engineering Employers Federation says the sector will outperform the rest of the economy next year.

However, the group says further expansion will depend in part on continued recovery in overseas markets.

Meanwhile, business group CBI has called manufacturing the “unsung hero” of the UK economy.

‘Record output’

After surveying more than 500 leading firms, the Engineering Employers Federation (EEF) said manufacturing firms were “powering ahead” by recruiting new staff and investing in their businesses.

“Manufacturers are ending the year on a high and should enter 2011 on a strong footing,” said the group’s chief economist Lee Hopley.

“The survey has shown record responses on output and orders for much of this year and, if this continues, we should see exports and investment delivering better balanced growth across the economy.”

However, he added that firms were struggling to find enough skilled workers and were facing rising input costs.

He also sounded a note of caution about the wider economic recovery, which he called uncertain.

”UK manufacturing is in many ways the unsung hero of our economy” – John Cridland, CBI

Government role

The CBI also argued manufacturing is “well placed to lead the country’s recovery”.

“UK manufacturing is in many ways the unsung hero of our economy,” said John Cridland, the group’s soon-to-be director general.

“Big productivity gains in the past 10 years have made it leaner than ever before.”

However, he said the government needed to play its part in the sector’s continued revival.

It must create a tax and regulatory environment to help manufacturers double the growth rate of exports by 2020, he said.

Spending cuts

Last week, a closely-watched survey suggested the UK manufacturing sector grew at its fastest rate for 16 years in November, with a record rise in employment.

The government has stressed the need for exports to play a greater role in future economic growth, particularly in light of its spending cuts and tax rises that are expected to hit consumer spending.

Manufacturing currently accounts for about 13% of the UK’s total economic output.

 

 

 

 

Source: http://www.bbc.co.uk/news/business-11921894

 

UK tourist industry eyes emerging markets

The number of tourists visiting the UK from emerging nations such as Brazil, Russia, India and China is set to rise sharply, a report by VisitBritain says.

It predicted that by 2014, visitor numbers from China alone would increase by almost 100,000 – a 90% jump.

This was partly due to the popularity of Premier League football in China, it added.

However, the bulk of people visiting the UK will still come from traditional European and North American markets.

The report also looked at reasons why tourists chose the UK as a holiday destination. This included relaxing “well-being” breaks, the opportunity to visit a range of galleries and museums, and sampling traditional British pubs.

It said travellers had moved away from wanting a service towards wanting an “experience”, saying they would choose their holiday on the basis of how real or authentic it felt.

Olympic Boost

The numbers of visitors from emerging nations remain small. Between Brazil, Russia, India and China there were 650,000 visitors in the UK last year- this compares with 3.8 million from France alone.

Between them, France, the Irish Republic, The US, Germany and Spain are expected to send an extra 3.3 million new visitors by 2014.

However, tourist chiefs are looking to new markets after 2009 saw 1.2 million fewer American visitors than in the record year of 2000.

And in the first seven months of this year, tourist numbers  from North America were down by 6% on the same period a year ago.

The relative weakness of the dollar against the pound, and the sluggish recovery of the US economy, are believed to be factors in the falling numbers.

VisitBritan forecasts the number of visitors from India will grow by 29% by 2014, with more an 100,000 extra visits. Russian tourist numbers are predicted to rise by 24% with Brazilian visitors set to increase by 32%

The chief executive of VisitBritan, Sandie  Dawe, said the 2012 Olympics and Paralympic games offered a ‘once in a lifetime boost’ to the tourist industry.

She added: ‘The challenge for Britain is that competetion is getting tougher every year and we are not immune (but)… I am confident that we will come through the challenges ahead’.

Source: http://www.bbc.co.uk/news/business-11282294