Recent headlines in the business press have highlighted the fact that the UK’s manufacturing sector looks set to continue its growth in 2015. This is great news for all businesses in most regions of the UK.
Exports are booming
According to a recent article in The Guardian ‘some firms are reporting a pick up in demand from European customers.’ This type of growth has a beneficial knock on effect on all of British industry and it’s not just the manufacturing sector that is displaying positive signs. The article reports that export orders in early 2015 have ‘nudged back into positive territory’ for the first time since the second quarter of last year.
Reasons for growth
The business magazine The Week maintains that the reasons for the good news from the manufacturing sector are varied. Some regions in the UK aren’t doing as well as others; London and the South East are performing well, as are Bristol, Manchester and Birmingham. It’s not just the manufacturing sector that’s performing well. Technology, the IT industry and digital agencies are all doing well, and this explains the strong growth figures across the whole of the UK, rather than one specific region.
Consequently, if you supply people, office furniture, a variety of goods and services to the manufacturing industry – such as producers of safety equipment, like nitrile gloves – 2015 is looking as if it will be a positive year all round. Increased employment also means that consumer confidence will return which will help shops and other commercial outlets.
Factors to bear in mind
Investors are opening their purse strings once more and this is helping companies expand and take on more staff. During the recession investment was at an all time low. Though current strength of sterling against the Euro and the dollar may have some adverse effect on the UK’s exports analysts haven’t reported any downturn in profits to date. Falling gas and oil prices mean that this particular sector is reducing in size rather than expanding. Companies in the North Sea recently announced redundancies among its workforce.
The future
A recent announcement from The British Chambers of Commerce forecasts that the UK’s GDP will rise from 2.5% to 2.7% in 2015. The Chamber stated that ‘Upgrades for 2014 and 2015 are linked to stronger performances we expect from all the main sectors than we predicted in March. Higher predicted growth in employment will also contribute to stronger growth.’
Growth in 2016 is only posted at 2.5% but this is due to a projected rise in interest rates as well as other external factors. Bearing in mind that 2015 is also the year of the General Election, it’s hoped that the progress in the UK’s manufacturing industry will continue to remain strong and help drive prosperity across all business sectors. Training and investment are still essential for the good of the country as a whole.