Manufacturing in the United Kingdom
Encyclopedia
In June 2010 British Manufacturing accounted for 8.2% of the workforce and 12% of the national output in June 2010. This was a continuation of the steady decline in the importance of Manufacturing
to the Economy of the UK since the 1960s, although the sector was still important for overseas trade, accounting for 83% of exports in 2003. The East Midlands and West Midlands (at 12.6 and 11.8% respectively) were the regions with the highest proportion of employees in manufacturing. London had the lowest at 2.8%.
Although the manufacturing sector's share of both employment and the UK's GDP has steadily fallen since the 1960s, data from the OECD shows that manufacturing output in terms of both production and value has steadily increased since 1945. A 2009 report from PricewaterhouseCoopers
, citing data from the UK Office for National Statistics
, stated that manufacturing output (gross value added
at 2007 prices) has increased in 35 of the 50 years between 1958 and 2007, and output in 2007 was at record levels, approximately double that in 1958.
This is a trend common in many mature Western
economies. Heavy industry
, employing many thousands of people and producing large volumes of low-value goods (such as steelmaking
) has either become highly efficient (producing the same amount of output from fewer manufacturing sites employing fewer people- for example, productivity in the UK's steel industry increased by a factor of 8 between 1978 and 2006 ) or has been replaced by smaller industrial units producing high-value goods (such as the aerospace
and electronics
industries).
was the largest contributor, with 8 global car manufacturers being present in the UK. These include British makers now owned by overseas companies such as BMW (MINI
, Rolls-Royce
), Tata
(Jaguar-Land Rover
), Volkswagen
(Bentley
) and General Motors (Vauxhall Motors
) and plants making vehicles under foreign ownership and branding such as Honda, Nissan and Toyota with a number of smaller, specialist manufacturers (including Lotus
and Morgan
) and commercial vehicle manufacturers (including Leyland Trucks
, LDV
, Alexander Dennis
, JCB
, the main global manufacturing plant for the Ford Transit
, Manganese Bronze
and Case-New Holland) also being present. The British motor industry also comprises numerous components for the sector, such as Ford's
diesel engine
plant in Dagenham
, which produces half of Ford's diesel engines globally.
A range of companies like Brush Traction
and Hunslet
manufacture railway locomotives and other related components. Associated with this sector are the aerospace and defence equipment industries. The UK manufactures a broad range of equipment, with the sector being dominated by BAE Systems
, which manufactures civil and defence aerospace, land and marine equipment; VT Group
, one of the world's largest builders of warships; and GKN
and Rolls Royce, who manufacture aerospace engines and power generation systems. Commercial shipbuilders include Harland and Wolff
, Cammell Laird
, Abels
, Barclay Curle
and Appledore
. Companies such as Princess, Sealine, Fairline Boats
and Sunseeker
are major builders of private motor yachts.
Another important component of engineering and allied industries is electronics, audio and optical equipment, with the UK having a broad base of domestic firms, alongside a number of foreign firms manufacturing a wide range of TV, radio and communications products, scientific and optical instruments, electrical machinery and office machinery and computers.
Chemicals and chemical-based products are another important contributor to the UK's manufacturing base. Within this sector, the pharmaceutical industry is particularly successful, with the world's second and third largest pharmaceutical firms (GlaxoSmithKline
and AstraZeneca
respectively) being based in the UK and having major research and development and manufacturing facilities there.
, SABMiller
and Scottish and Newcastle, other major manufacturing companies such as Unilever
, Cadbury, Tate & Lyle
, British American Tobacco
, Imperial Tobacco
, EMAP
, HarperCollins
, Reed Elsevier
, Ben Sherman
, Burberry
, French Connection
, Reebok
, Pentland Group
and Umbro
being amongst the largest present.
The Blue Book 2006 reports that this sector added gross value of £147,469 million to the UK economy in 2004.
Manufacturing is an important sector of the modern British economy and there is a considerable amount of published research on the subject of the factors affecting its growth and performance. Of late, such things as increases in taxation and regulation have tended to diminish the favourableness of the political-legal environment for UK industry. Within manufacturing, British firms and industries have often lagged behind their overseas competitors in terms of productivity and various other key performance measures. However, Britain – the birthplace of the Industrial Revolution – continues to be one of the most attractive countries in the world for direct foreign industrial investment.
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
to the Economy of the UK since the 1960s, although the sector was still important for overseas trade, accounting for 83% of exports in 2003. The East Midlands and West Midlands (at 12.6 and 11.8% respectively) were the regions with the highest proportion of employees in manufacturing. London had the lowest at 2.8%.
Although the manufacturing sector's share of both employment and the UK's GDP has steadily fallen since the 1960s, data from the OECD shows that manufacturing output in terms of both production and value has steadily increased since 1945. A 2009 report from PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
, citing data from the UK Office for National Statistics
Office for National Statistics
The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the Parliament of the United Kingdom.- Overview :...
, stated that manufacturing output (gross value added
Gross value added
Gross Value Added ' is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy...
at 2007 prices) has increased in 35 of the 50 years between 1958 and 2007, and output in 2007 was at record levels, approximately double that in 1958.
This is a trend common in many mature Western
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...
economies. Heavy industry
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
, employing many thousands of people and producing large volumes of low-value goods (such as steelmaking
Steelmaking
Steelmaking is the second step in producing steel from iron ore. In this stage, impurities such as sulfur, phosphorus, and excess carbon are removed from the raw iron, and alloying elements such as manganese, nickel, chromium and vanadium are added to produce the exact steel required.-Older...
) has either become highly efficient (producing the same amount of output from fewer manufacturing sites employing fewer people- for example, productivity in the UK's steel industry increased by a factor of 8 between 1978 and 2006 ) or has been replaced by smaller industrial units producing high-value goods (such as the aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
and electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...
industries).
Engineering and allied industries
Engineering and allied industries comprise the single largest sector, contributing 30.8% of total Gross Value Added in manufacturing in 2003. Within this sector, transport equipmentBritish motor industry
The automotive industry in the United Kingdom is now best known for premium and sports car marques including Aston Martin, Bentley, Daimler, Jaguar, Lagonda, Land Rover, Lotus, McLaren, MG, Mini, Morgan and Rolls-Royce. Volume car manufacturers with a major presence in the UK include Ford, Honda,...
was the largest contributor, with 8 global car manufacturers being present in the UK. These include British makers now owned by overseas companies such as BMW (MINI
Mini
The Mini is a small car that was made by the British Motor Corporation and its successors from 1959 until 2000. The original is considered a British icon of the 1960s, and its space-saving front-wheel-drive layout influenced a generation of car-makers...
, Rolls-Royce
Rolls-Royce Motor Cars
Rolls-Royce Motor Cars is a British manufacturer of luxury automobiles based at the Goodwood plant in West Sussex, England. It is the current producer of Rolls-Royce branded automobiles, whose historical production dates back to 1904. The factory is located across from the historic Goodwood Circuit...
), Tata
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
(Jaguar-Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
), Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
(Bentley
Bentley
Bentley Motors Limited is a British manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley had been previously known for his range of rotary aero-engines in World War I, the most famous being the Bentley BR1 as used in later...
) and General Motors (Vauxhall Motors
Vauxhall Motors
Vauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
) and plants making vehicles under foreign ownership and branding such as Honda, Nissan and Toyota with a number of smaller, specialist manufacturers (including Lotus
Lotus Cars
Lotus Cars is a British manufacturer of sports and racing cars based at the former site of RAF Hethel, a World War II airfield in Norfolk. The company designs and builds race and production automobiles of light weight and fine handling characteristics...
and Morgan
Morgan Motor Company
The Morgan Motor Company is a British motor car manufacturer. The company was founded in 1910 by Harry Frederick Stanley Morgan, generally known as "HFS" and was run by him until he died, aged 77, in 1959. Peter Morgan, son of H.F.S., ran the company until a few years before his death in 2003...
) and commercial vehicle manufacturers (including Leyland Trucks
Leyland Trucks
Leyland Trucks is the UK's leading medium & heavy duty truck manufacturer and is based in the town of Leyland, Lancashire. It emerged from the bankruptcy of DAF NV as the result of a management buy-out in 1993, and was acquired by PACCAR in 1998, of which it is now a subsidiary...
, LDV
LDV Limited
LDV Group Limited was a British van manufacturer, based in the Ward End area of Birmingham.In its history part of Rover Group and Leyland DAF, was latterly a wholly owned subsidiary of the Russian GAZ group...
, Alexander Dennis
Alexander Dennis
Alexander Dennis Limited is the largest bus builder in the United Kingdom. It incorporated the three last surviving bus manufacturers which started bus production before World War II: Dennis, Alexander and Plaxton.- History :Alexander Dennis was formed as TransBus on 1 January 2001, after the...
, JCB
J. C. Bamford
JCB is a global construction, demolition and agricultural equipment company headquartered in Rocester, United Kingdom. It is the world's third-largest construction equipment manufacturer. It produces over 300 types of machines, including diggers , excavators, tractors and diesel engines...
, the main global manufacturing plant for the Ford Transit
Ford Transit
The Ford Transit is a range of panel vans, minibuses, and pickup trucks, produced by the Ford Motor Company in Europe.The Transit has been the best-selling light commercial vehicle in Europe for 40 years, and in some countries the term "Transit" has passed into common usage as a generic term...
, Manganese Bronze
Manganese Bronze
Manganese Bronze Holdings PLC is an engineering company based in Coventry, England. Since the sale of its components division in 2003 the company has only one operating division—LTI Limited, trading as The London Taxi Company—which manufactures and retails London Black Taxis.The London...
and Case-New Holland) also being present. The British motor industry also comprises numerous components for the sector, such as Ford's
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
diesel engine
Diesel engine
A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition to burn the fuel, which is injected into the combustion chamber...
plant in Dagenham
Dagenham
Dagenham is a large suburb in East London, forming the eastern part of the London Borough of Barking and Dagenham and located east of Charing Cross. It was historically an agrarian village in the county of Essex and remained mostly undeveloped until 1921 when the London County Council began...
, which produces half of Ford's diesel engines globally.
Brush Traction
This article is about a British rail-locomotive maker. For the Detroit auto-maker, see Brush Motor Car CompanyBrush Traction is a manufacturer and maintainer of railway locomotives, part of the FKI group , based at Loughborough in Leicestershire, England situated alongside the Midland Main Line.-...
and Hunslet
Hunslet Engine Company
The Hunslet Engine Company is a British locomotive-building company founded in 1864 at Jack Lane, Hunslet, Leeds, West Yorkshire, England by John Towlerton Leather, a civil engineering contractor, who appointed James Campbell as his Works Manager.In 1871, James Campbell bought the company for...
manufacture railway locomotives and other related components. Associated with this sector are the aerospace and defence equipment industries. The UK manufactures a broad range of equipment, with the sector being dominated by BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
, which manufactures civil and defence aerospace, land and marine equipment; VT Group
VT Group
VT Group plc was a British defence and services company, formerly known as Vosper Thornycroft. The Company had diversified from shipbuilding into various engineering and support services, becoming involved in many areas of provision through five main operating groups: VT Communications, VT...
, one of the world's largest builders of warships; and GKN
GKN
GKN plc is a multinational automotive and aerospace components company headquartered in Redditch, United Kingdom. The company was formerly known as Guest, Keen and Nettlefolds and can trace its origins back to 1759 and the birth of the Industrial Revolution.GKN is listed on the London Stock...
and Rolls Royce, who manufacture aerospace engines and power generation systems. Commercial shipbuilders include Harland and Wolff
Harland and Wolff
Harland and Wolff Heavy Industries is a Northern Irish heavy industrial company, specialising in shipbuilding and offshore construction, located in Belfast, Northern Ireland....
, Cammell Laird
Cammell Laird
Cammell Laird, one of the most famous names in British shipbuilding during the nineteenth and twentieth centuries, came about following the merger of Laird, Son & Co. of Birkenhead and Johnson Cammell & Co. of Sheffield at the turn of the twentieth century.- Founding of the business :The Company...
, Abels
Abels Shipbuilders
Abels Shipbuilders Ltd is a ship and boat builder in Bristol, England. They are now the largest remaining shipbuilder in Bristol.-Business:...
, Barclay Curle
Barclay Curle
-History:The company was founded by Robert Barclay at Stobcross in Glasgow, Scotland during 1818. In 1862, the company built a large engineering works at Stobcross in Glasgow. In 1876, the company moved their yard down the river to Whiteinch. It was incorporated in 1884 as Barclay Curle...
and Appledore
Appledore Shipbuilders
-History:The Appledore Yard was founded in 1855 on the estuary of the River Torridge. The Richmond Dry Dock was built in 1856 by William Yeo and named after Richmond Bay in Prince Edward Island, where the Yeo family's shipping fleet was based....
. Companies such as Princess, Sealine, Fairline Boats
Fairline Boats
Fairline Boats Ltd are an English motor yacht builder, currently owned Better Capital and the RBS. Started in 1963 by Jack Newington, the company presently builds motor yachts in both its original Oundle base as well as Corby, Northamptonshire-History:...
and Sunseeker
Sunseeker
Sunseeker International, is a UK luxury motor yacht manufacturer. Their headquarters and assembly factory is in Poole Harbour, at Poole in Dorset, England. The company has been making motor boats since 1979.-Profile:...
are major builders of private motor yachts.
Another important component of engineering and allied industries is electronics, audio and optical equipment, with the UK having a broad base of domestic firms, alongside a number of foreign firms manufacturing a wide range of TV, radio and communications products, scientific and optical instruments, electrical machinery and office machinery and computers.
Chemicals and chemical-based products are another important contributor to the UK's manufacturing base. Within this sector, the pharmaceutical industry is particularly successful, with the world's second and third largest pharmaceutical firms (GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...
and AstraZeneca
AstraZeneca
AstraZeneca plc is a global pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world's seventh-largest pharmaceutical company measured by revenues and has operations in over 100 countries...
respectively) being based in the UK and having major research and development and manufacturing facilities there.
Other important sectors
Other important sectors of the manufacturing industry include food, drink, tobacco, paper, printing, publishing and textiles. The UK is also home to three of the world's biggest brewing companies: DiageoDiageo
Diageo plc is a global alcoholic beverages company headquartered in London, United Kingdom. It is the world's largest producer of spirits and a major producer of beer and wine....
, SABMiller
SABMiller
SABMiller plc is a global brewing and bottling company headquartered in London, United Kingdom. It is the world's second-largest brewing company measured by revenues and is also a major bottler of Coca-Cola. Its brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell...
and Scottish and Newcastle, other major manufacturing companies such as Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
, Cadbury, Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
, British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
, Imperial Tobacco
Imperial Tobacco
Imperial Tobacco is a global tobacco company headquartered in Bristol, United Kingdom. It is the world’s fourth-largest cigarette company measured by market share , and the world's largest producer of cigars, fine-cut tobacco and tobacco papers...
, EMAP
EMAP
Emap Limited is a British media company, specialising in the production of business-to-business magazines, and the organisation of business events and conferences...
, HarperCollins
HarperCollins
HarperCollins is a publishing company owned by News Corporation. It is the combination of the publishers William Collins, Sons and Co Ltd, a British company, and Harper & Row, an American company, itself the result of an earlier merger of Harper & Brothers and Row, Peterson & Company. The worldwide...
, Reed Elsevier
Reed Elsevier
Reed Elsevier is a publisher and information provider operating in the science, medical, legal, risk and business sectors. It is listed on several of the world's major stock exchanges. It is a FTSE 100 and FT500 Global company...
, Ben Sherman
Ben Sherman
Ben Sherman is a British based clothing company, designing shirts, suits, shoes, accessories and other items that are, in common with many British brands, now made overseas, largely in the Far East. Their designs sometimes feature the Royal Air Force roundel which is often called the mod target...
, Burberry
Burberry
Burberry Group plc is a British luxury fashion house, manufacturing clothing, fragrance, and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. Burberry is most famous for its iconic trench coat, which was invented by founder Thomas Burberry...
, French Connection
French Connection (clothing)
French Connection is a retailer and wholesaler of fashion clothing and accessories. Founded in 1972 by Stephen Marks it is based in London, is listed on the London Stock Exchange and operates globally....
, Reebok
Reebok
Reebok International Limited, a subsidiary of the German sportswear company Adidas since 2005, is a producer of Athletic shoes, apparel, and accessories. The name comes from the Afrikaans spelling of rhebok, a type of African antelope or gazelle...
, Pentland Group
Pentland Group
Pentland Group plc is a privately held, global brand management company based in the UK, involved in the sports, outdoor and fashion markets. It is owned by Stephen Rubin and family...
and Umbro
Umbro
Umbro is an English sportswear and football equipment supplier based in Cheadle, Greater Manchester, England. The company is now part of Nike. Umbro designs, sources, and markets sport-related apparel, footwear, and equipment...
being amongst the largest present.
The Blue Book 2006 reports that this sector added gross value of £147,469 million to the UK economy in 2004.
Manufacturing is an important sector of the modern British economy and there is a considerable amount of published research on the subject of the factors affecting its growth and performance. Of late, such things as increases in taxation and regulation have tended to diminish the favourableness of the political-legal environment for UK industry. Within manufacturing, British firms and industries have often lagged behind their overseas competitors in terms of productivity and various other key performance measures. However, Britain – the birthplace of the Industrial Revolution – continues to be one of the most attractive countries in the world for direct foreign industrial investment.
External links
- http://www.buybritish.co.uk : Independent site supporting British Manufacturing