The
Engineered in Britain survey 2014 is based on two sets of research conducted in April 2014. The first survey was conducted by MSS Research and gathered the views of 1,000 senior professional engineers working in the UK’s manufacturing sector. The second survey was conducted by ICM Research and focused on the views of 1,000 members of the general population on issues surrounding UK manufacturing.
The Institution has partnered with BDO LLP in producing this report. This partnership allows the Institution to report the results with a broader perspective, allowing some economic analysis and insight from one of the country’s leading accounting firms.
In his analysis of the results, in his role as President of the Institution, Patrick Kniveton said:
“The economy is demonstrating strong growth in many sectors (2013 GDP reaching 1.8%, with forecasts for 2014 now being 2.7%). Unemployment is slowly coming down (200,000 drop in 2013) and inflation remains under control. UK manufacturing has also recorded a 1.3% growth in the first quarter of 2014, with companies currently adding 10,000 new jobs each month. The survey reflects much of the confidence being reported in the media over recent months. Both the Public and Manufacturer polls have become more positive about the future of our manufacturing capability, and the efforts undertaken by Government to ensure a sustained future for this vital sector. For the Institution and its members, this is an encouraging position. However, our continuing long-term concern is the lack of new engineers and technicians entering the profession.”
Dr Colin Brown, Director of Engineering at the Institution, said:
“While individual takeovers need to be appraised on their own merits, these results show that UK manufacturers are keen to see more overseas investment in UK manufacturing.”
“UK manufacturing and engineering lies at the heart of a healthy economy and as long as these investments are being made to create UK jobs and exploit UK skills we should welcome them, as investments in the UK’s future.”
The
Engineered in Britain survey 2014 examines the health of UK manufacturing from three perspectives. Politically, it considers how the actions and attitudes of Government are impacting on the state of the nation’s manufacturing sector. In terms of skills, it asks whether the UK has the right people, with the appropriate training and experience, that it needs to develop the sector; and it asks where, in terms of globalisation and commercialisation, the UK’s manufacturing industry stands against other nations.
Political summary
The overall survey results reflect the current positive mood in the UK towards our economic situation. Both Public and Manufacturer polls recorded a growing belief that Government was committed to a more balanced economy compared to results over the last four years. Furthermore, 41% of the Manufacturers polled indicated support for current manufacturing policy (up from 26% in 2013). Of the main political parties, Conservative manufacturing policy was the clear favourite with Manufacturers.
On individual policy areas, support for transport, environment and energy policy have all declined since the 2013 report, possibly reflecting some of the well-publicised issues that the current administration has experienced in these areas, for example the ongoing HS2 debate, flooding and electricity pricing.
On the Chancellor’s well-publicised aim to double UK exports to £1tn by 2020, 64% of Manufacturers felt the target was unrealistic.
Skills summary
Although over one third of Manufacturers polled indicated that their companies were currently recruiting engineers and technicians, an overwhelming majority (89%) did not believe the UK was producing enough engineers to sustain the country’s future economic growth. This view reflects well-publicised concerns from many organisations about a looming shortage of science, technology, engineering and maths (STEM) professionals in the UK over the coming decades.
Of continuing concern in both polls is the poor state of careers advice provided to the next generation, with only 19% of the Public and 13% of Manufacturers believing Government was doing enough to provide adequate STEM advice to students.
On recruitment of engineers and technicians, 35% of Manufacturers polled felt science and maths skills were lacking in new recruits, with 32% also noting a poor work ethic in many.
Globalisation and Commercialisation summary
Results of the 2014 report continue to indicate a greater number of companies offshoring activity (17%), compared to those choosing to reshore (11%). Justification for this trend indicates cost as the main driver to offshore, with a reduction in manufacturing unit costs (71%) and labour costs (73%) two commonly cited reasons. However, the decision to reshore was more often based on quality of production, with 72% citing quality of manufacturing and 59% indicating better skills in the workforce as the reasons to reshore.
Looking towards the future, 85% of Manufacturers polled believed the composite materials sector would see strong growth in the next decade, with biomedical industries (79%) and construction (73%) close behind.
With two national debates, on Scottish independence and the UK’s position within the European Union, currently under way, both groups were asked if they felt the uncertainty created by these referendums was having any effect on UK manufacturing. On Scotland, 44% of Manufacturers and 27% of the Public believed it was having a negative effect on the sector. Similarly, 52% of Manufacturers and 44% of the Public believed the uncertainty surrounding EU membership was having a negative impact on the sector.
To read the full report, visit:
Engineered in Britain 2014: Manufacturing a successful economy?