Back in April 2018, Oxford Economics published The True Impact of UK Manufacturing. The report contained some 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.
Three key sets of statistics stood out:
• Direct impact of UK manufacturing on the economy – 2.6 million jobs or 8% of UK employment (still greater than financial services) and £177 billion in GDP or 9% of UK GDP.
• Indirect impact i.e. associated supply chains – 5 million jobs or 15% of UK employment, £301 billion in GDP or 15% of UK GDP.
• “Induced” impact i.e. impact when direct and indirect employees spend their wages – 7.4 million jobs or 23% 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?