As a Brit abroad, one of the most frustrating urban myths I hear about the British economy is “Britain doesn’t really make stuff anymore does it?” Isn’t your economy based on the services industry, high tech, financial services etc?
This is not true. The manufacturing sector in the UK is alive and well.
More cars were exported last year than ever before. The UK is now a net exporter of cars for the first time since 1976. The future of the industry is looking bright.
And take Canada’s very own Bombardier – a manufacturing giant, and the largest private sector employer in Northern Ireland.
As you will have seen from recent news coverage, we also make fine food products like Marmite and Irn-bru!
In the UK we are creating the right conditions for businesses to excel. Our economy is growing and Ernst and Young now say the UK is the best place in Europe for new entrepreneurs.
We have cut £1.2 billion of red tape, are reducing corporation tax to 20% (the lowest in the G7) and as low as 10% for companies that turn innovation into manufacturing via the Patent Box.
And we’re proud that in the first half of last year, the UK became the world’s largest recipient of inward foreign direct investment.
But we can do more. As you may know, there has been a trend in recent years of “offshoring” – where companies move production facilities to low cost countries. That will continue, and it makes sound financial sense for many companies.
But we’re now beginning to see a reversal of that trend globally. A recent survey showed that 1 in 10 British small and medium enterprises (SMEs) has brought some production back to Britain in the last year.
Prime Minister David Cameron talked about this trend at the World Economic Forum at Davos last week and announced a new initiative to make Britain the “Re-Shore Nation”.
We are setting up a one stop shop – Reshore UK – to help businesses to capitalise on the opportunities of re-shoring. This service will be open to British and international businesses, giving industry the support it needs to set up in the UK, and to bring production back to Britain.
I hope we can attract more Canadian businesses to set up in the UK with this offer. If you’re tempted, get in touch with UK Trade & Investment (UKTI) for more information.
And in the meantime, don’t let anyone tell you that the UK doesn’t make anything anymore!