British manufacturing is growing to rebalance the UK economy

 A November report from manufacturers’ organisation EEF says the UK’s manufacturers are well placed to respond to the Prime Minister's call to "create and innovate; invest and grow". According to the survey of 300 companies, growth-oriented companies are more likely to see finding employees with the right skills, their ability to innovate and management capability as the key barriers to growth.

‘The Shape of British Industry’ survey, published in partnership with RBS, comes ahead of the government's forthcoming Growth White Paper and its Manufacturing Framework. However, EEF suggested that the sector would benefit from a government strategy that helps to overcome the growth barriers companies face and to grow the next generation of large global players.

EEF chief executive, Terry Scuoler, suggested that while the current policy attention on young businesses and start ups is helpful, government must not ignore the wider benefits to the economy that larger companies bring. The UK needs more than a handful of larger companies over the next decade, rather hundreds of them with the scale and muscle to tackle our economic challenges.

The survey results portray a successful sector growing at the fastest rate since 1994 and whose growth strategies are centred on innovation and investment. Some 76% of companies state that their growth strategies will be achieved by increasing innovation in the UK and 69% by increasing capital investment. It is also highly export driven, with exports accounting for more than half of turnover in 40% of companies and one third having production facilities outside the UK.