UK manufacturing is growing stronger. Survey results recently released by Markit and the Chartered Institute for Purchasing and Supply have announced that UK manufacturing levels are on the rise. The survey revealed that in December the manufacturing levels in Britain reached an index score of 57.3; which is well above the average levels for the last decade. According to Markit, British manufacturing recovery remains on track.
Unemployment is still falling
The survey carried out by Markit and CIPS showed that the upsurge in manufacturing continued in the final quarter of 2013. There is demand from other countries for products and parts created in the UK, Brazil, China, Ireland, Russia and the US. Of course, growth in British manufacturing industries means that more jobs are being created, and this helps the economy become stronger. UK manufacturing should create 15,000 more jobs by the end of 2014, therefore contributing to Britain's growing market force. Unemployment currently stands at 7.4%, the lowest level since 2009 and it is set to fall further.
Motor Industry is Moving Up
Last week the Society of Motor Manufacturers and Traders announced predictions that Britain's motor industry was doing very well; it is due to surpass the record levels seen in the 1970s by 2017. Britain's motor businesses managed to build 1.92 million vehicles in 1972, a level which Britain is slowly catching up with now. It is surprising that these figures haven't yet been broken due to so much development in technology and machinery in the past four decades; however there hasn't been the demand or investment until now.
Britain was recently confirmed as Europe's fourth largest car manufacturer behind Germany, Spain and France, but if the SMMT's predictions are correct we are soon to overtake France's production rate. The success of the British motoring industry is down to greater demand for overseas exports, huge amounts of investment and employing an expert workforce. Last year Britain's biggest automotive maker, Jaguar Land Rover, invested £1.5 billion in its Solihull plant; a decision which will quickly pay off for them as it has a record-breaking year in 2013 with sales up 19%.
Manufacturing Rise Causes Supply-Chain Reaction
The strength and success of British automotive industries is a really positive thing for our economy, which is making valiant efforts to recover. A rise in the demand for cars means that more are made, but it also strengthens all businesses which supply components to the car industries, and even those companies who manufacture the vehicle-making machines will experience growth.
The Chief executive of the Engineering Employers’ Federation, Lee Hopely, has been quoted as saying that the rise in car manufacturing will have a broader positive effect on other manufacturing industries who contribute indirectly to the automotive sector. This is great news for spring suppliers like European Springs, as we often provide springs for cars themselves and car manufacturing machinery.
On the whole, things seem to be looking up for the British economy, with predictions for rising industry activity and plenty of evidence for rising employment. The British economy is in need of a strong boost which will set the cogs turning for other businesses too, and British manufacturing could be just what it needs to set the growth in motion.