Conference looks at how manufacturing can aid the UK's economic recovery

Sadly, most people still perpetuate the myth that Britain does not make anything anymore – but they are wrong. The facts are that manufacturing contributes around 11% of the GDP and employs around 3 million people, producing 55% of all UK exports. Indeed, the UK is the ninth largest manufacturing country in the world by output, so manufacturing is certainly still extremely influential for the UK's economy. The UK now has an opportunity to put high-tech, advanced manufacturing right back at the heart of British life, ensuring more jobs and growth from new and growing areas of industry. However, to allow us to do this, we need a focussed approach, the right kind of support from Government, and investment not only in human capital to tackle the engineering skills challenge, but also in R&D to remain competitive on the global stage. Investment levels in UK manufacturing capital equipment have been, and according to forecasts look set to continue, well below the levels of 2008 despite the continued rise in manufacturing output. The challenge is starkly presented when we look at the comparisons of UK investment compared with that in Germany. On comparable output levels, UK manufacturing investment in 2011 was a good 30% behind that of Germany. However, the Government is responding to this challenge by pledging more investment and a greater focus on R&D both for products and manufacturing related services, as well as around high-tech manufacturing related services and processes. The proposed innovation catapult centres provide a great example. However, we are in catch-up mode, particularly when compared again to Germany, where similar institutes have a combined budget 300 times that of the UK's. With appropriate support and strategic vision, the UK can lead the world in aerospace, renewable energy, hi-tech engineering and low-carbon technologies, such as offshore wind turbines and electric cars. These are the kinds of advanced engineering projects that will not only help secure Britain's manufacturing future, but also provide the enticing and aspirational career paths we should be nurturing for the engineers of tomorrow. But we also need a workforce that will deliver it. Of the 300,000 graduates emerging each year from our educational establishments, only 24,000 do so with engineering–related degrees. By comparison, China benefits from 600,000 engineering graduates per annum. Statistics also confirm the even more critical requirements for vast improvement in the rate and availability of vocational training. The engineering sector requires 235,000 people at apprentice and technician level over the coming decade and the pipeline is around 50% short in both numbers and quality. Renewed focus on the importance of – and investment in – apprenticeships is to be applauded, but it's critical that this isn't just a brief moment in the spotlight. Investing in apprenticeships and training at all levels within the sector are key to the long term health and prosperity of manufacturing. It's also crucial that we give technical apprenticeships a much higher standing in society. Currently, manufacturing is enjoying something of a renaissance and – as a company that employs more than 5,000 within UK manufacturing – we know this first hand. There is tangible backing from Government and significant support from other parts of the economy where the belief is that reinvigorating our manufacturing base will help to kick-start wider growth. So, now is the time for action, and manufacturers must work together to ensure that manufacturing continues to strengthen its position as a key driver for growth in the UK economy. I look forward to seeing you at Answers for Industry and hearing your views on the future for manufacturing. We're excited about working with you and very much look forward to engaging with you to help answer questions on the challenges that UK industry is facing. To book your free place at Answers For Industry on 4tha nd 5th July at Manchester Central Convention Complex, log on to www.siemens.co.uk/afi.