NEWS n 5 UK overtakes France to become world’s 8th largest manufacturer THE UK HAS OVERTAKEN France to become the world’s eighth-largest manufacturer, according to the manufacturers’ organisation, Make UK. Its analysis of the latest official data also reveals that manufacturing jobs in the UK pay better than both the services sector and the economy as a whole. According to Make UK, in 2021 – the latest year for which global comparisons are available – the UK’s manufacturing output was worth $272bn, compared to $262bn for France. Both were behind Italy on $314bn. China was the world’s largest manufacturer with sales worth $4.9tn, followed by the US on $2.5tn and Japan on $995bn. Germany was the world’s fourth-biggest manufacturer, and Europe’s largest, with 2021 sales worth $803bn. The figures are contained in the latest edition of Make UK’s annual Manufacturing – The Facts publication, which contains data on the contribution manufacturing makes to the UK economy including exports, as well as a sectoral breakdown, and a comparison with other countries. While Make UK regards the manufacturing sector’s rise in the export rankings as “encouraging”, it cautions that this is only the third time since 2002 that the UK has been ranked higher than France and cannot be attributed to a post-Brexit bounce or other specific factors. Separate 2022 data from the Office for National Statistics (ONS) values the UK’s manufacturing output at £224bn. Make UK believes that, if the Government were to commit to expanding manufacturing to 15% of the UK’s GDP – adding an estimated £142bn to the UK economy – the sector could be the same size as seventh-ranked Italy. The Make UK analysis also shows that, contrary to popular opinion, manufacturing jobs are better paid than jobs in the services sector and the economy as a whole. According to ONS data, the average salary in manufacturing during 2022 was £36,488 – almost 10% higher than the national average of £33,402, and well ahead of the £32,676 average for the services sector. The analysis shows that the US remains the UK’s main export market, worth £56.7bn in 2022. While the Netherlands (on £33.3bn) has overtaken Germany (£37bn), to become the UK’s second-biggest export market, Make UK warns that this figure could be inflated artificially by goods routed via Rotterdam for onward travel to other destinations. Ireland is the UK’s fourth-largest export market (£30.3bn). Six of the country’s top ten export markets are in the EU and are together worth around £150bn – almost three times as much as exports to the US, and around four times higher than sales to China. According to Make UK, this highlights the continued importance of the EU for UK goods and the need to smooth trade barriers with what remains its dominant market. The food and drink sector is the UK’s biggest exporter, sending 12.4% of its goods abroad in 2022. The sector expanded its exports in 2022 by almost a quarter (23%) compared to 2021. The North West remains the UK’s leading manufacturing area, with an output worth £28.2bn and employing 314,000 people. Manufacturing accounts for almost 15% of the North West’s economic output, and 8% of its employment. With many competitor nations having their own industrial strategies, Make UK is repeating its calls for a long-term, modern, and robust strategy for the UK which could help turn the Government’s 15% ambition into a reality. www.makeuk.org www.drivesncontrols.com October 2023 The US-headquartered distributor DigiKey has announced that direct shipments from European suppliers to European customers are now possible under its Marketplace programme. Shipments sent within Europe will typically arrive on the next day, rather than in a couple of days as happened before. Until now, products sold under this service and originating in Europe have had to be shipped to DigiKey’s US headquarters before being shipped back to Europe. The new service will cut shipping costs, save time and reduce the environmental impact of long-distance shipping. With products not needing to be shipped outside of Europe, more types of products will be available, including heavy automation equipment. Currently about 30,000 product lines (SKUs) are eligible for the service, with more being added daily. “DigiKey’s Marketplace gives our suppliers and customers in Europe access to more product lines than ever before and we are thrilled to offer this direct shipping option in the region,” says Missy Hall, DigiKey’s vice-president of new market development. “By allowing additional cost savings, efficiency and more sustainability, as well as a wider variety of products that are able to be sold in Europe, we can accelerate progress for engineers and designers.” DigiKey is continuing to expand the choice of products and suppliers that are available under the Marketplace scheme, which acts a single source for products including industrial automation equipment, IoT systems, and test & measurement instruments. As well as automation products, DigiKey also distributes electronic components worldwide. It has more than 17.2 million components from more than 2,800 manufacturers in stock and available for immediate shipment. www.digikey.co.uk/en/resources/marketplace DigiKey offers European buyers next-day deliveries The top ten export destinations for UK manufactured goods, excluding food and beverage Source: Make UK
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