Oxford Economics report findings demonstrate just how important manufacturing is to the UK economy
IN April 2018 Oxford Economics published a report called The True Impact of UK Manufacturing. It contained fascinating statistics about how important manufacturing is to the UK economy. Some of the report’s data were based on 2016 figures, well in advance of the impact of COVID-19 and so, arguably, it is even more important today, writes Mark Foulger (left), commercial director of Made in Britain member PFF Health.
Three key sets of statistics stood out:
• Direct impact of UK manufacturing on the economy – 2.6 million jobs or 8 per cent of UK employment (still greater than financial services) and £177 billion in GDP or nine per cent of UK GDP.
• Indirect impact i.e. associated supply chains – 5 million jobs or 15 per cent of UK employment, £301 billion in GDP or 15 per cent of UK GDP.
• “Induced” impact i.e. impact when direct and indirect employees spend their wages – 7.4 million jobs or 23 per cent of UK employment and £446 billion in GDP.
In summary, for every £1 million that UK manufacturing contributes to UK GDP, a further £1.5 million is supported across the wider economy. And, for each job in manufacturing a further 1.8 are supported in other areas of the UK economy.
This isn’t just applicable to the UK – many of the world’s economies have been badly hit due to COVID-19, but doesn’t it make sense to buy the products made in your backyard?
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