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UK manufacturers are lagging behind G7 countries

The UK is falling behind in the global manufacturing race, according to the Trade Union Congress (TUC) and figures from the Organisation for Economic Co-operation and Development (OECD).

In comparison with other G7 mining and manufacturing countries, which includes Germany, the U.S., China and France, the UK has slipped to fifth place in production output above just Italy and Japan.

Figures from OECD show that industrial production has dropped by 2.6% in the past two and a half years while Germany is producing nearly 10% more than it was two years ago.

TUC said the UK’s position was especially worrying because production has fallen in every quarter since the beginning of 2011.

The union said the country must produce much stronger manufacturing and mining growth if it is to close the trade deficit and become more financially independent.

TUC also found the UK is behind in GDP figures when compared with other G7 countries, and said the Chancellor must make better provisions for key productive sectors in his next budget statement.

TUC also urged the Government to use its £238bn procurement budget to support British jobs and industry, and called for greater support for energy intensive industries like ceramics, chemicals and steel.

Further recommendations included setting up a state-owned business bank and taking advice from Lord Heseltine’s economic report to set up a National Growth Strategy.

Frances O’Grady, TUC’s general secretary, commented: “The TUC agrees with the Chancellor that in order for the UK to compete our economy must be less reliant on financial services and the South East.

“But the combination of demand-sapping austerity and failure to support British industry means that the UK is falling even further behind our major competitors.

“With demand for financial products understandably down on pre-recession levels, it’s more important than ever that we produce more goods, rather than relying on imports.

“Manufacturing and mining have never really recovered from the hammering they took in the 1980s. The Chancellor has a chance to put right the damage done by previous Conservative governments by making a bold commitment to support manufacturing again.

“Next month’s Budget gives the Chancellor the perfect opportunity to stand up for British industry by announcing a new business bank and the kind of state-level support that our competitors already provide to their productive industries.”

This was posted in Bdaily's Members' News section by Miranda Dobson .