Why British manufacturing is so competitive

“I was astonished,” the senior Turkish contact tells me.  “This British company got in touch to bid for [commercially sensitive – an electronic supply contract for a huge project] and it turned out that their product was fantastic!  And a great price!  I mean, I know you Brits are great at business services, architecture, design, engineering, financial services and so on but I always thought your manufacturing industry was expensive.  Plus, I discover that another Japanese-headquartered company which manufactures in the UK also has a competitive, high quality electronic product for [another aspect of the project].  Why did I not know about British manufacturing?“

My Turkish contact asked a good question.  Misconceptions about British manufacturing are common in many countries – including in the UK itself.

Because the UK is an advanced, high-wage economy, some people think that our manufacturing sector should not be competitive.  In fact, it is competitive both on quality and price.  For example:

• The aerospace sector in the UK is the largest in Europe.  It has grown 27% since 2010;

• British car production is booming.  The UK is the third largest producer in Europe and expanding.  In 2014 it exported over 78% of production – mostly top-end vehicles;

• In part because the UK is such a great place for manufacturing, it is by far the biggest destination for foreign direct investment (FDI) in Europe.  It has attracted manufacturers such as Airbus, Boeing, Siemens, Caterpillar, Ford, BMW, Toyota, Nissan, Honda, Hitachi, Bombardier and GE.  Turkish companies, too, are setting up business in the UK – welcome, Simit Sarayi!

Why is British manufacturing so competitive?

One key reason is that the UK is one of the most open economies in the world.  Want to manufacture or sell your quality goods in the UK?  You’re welcome!

British consumers are delighted to buy either foreign or British-made goods if the price and quality are right.  We know the world is a highly interconnected marketplace and that if, for example, Volkswagen buys Bentley, that will lead to investment, jobs and growth.  Since VW bought Bentley in 1998, production has increased from around 2,000 cars in 2000 to nearly 11,000 in 2013.

Whereas in some countries, governments promote “buy local” policies, or seek to promote or protect home-grown companies and build barriers against foreign competition, in the UK we believe that opening our markets is best both for businesses and consumers.

In short: to survive and thrive in the British market, a company has to be inventive, competitive and all-round brilliant.

So whether you’re procuring products for a massive public infrastructure project in Turkey or considering what model of car might suit you best in Brazil, remember: British manufactured goods have learned to compete in a tough global market place.  Next time you’re considering buying something, remember that the British product may well offer the best possible combination of quality and price.

And if you’re looking for a British supplier, please drop me a line at  uktiturkey@fco.gov.uk.

Follow Leigh Turner on Twitter at  @leighturnerFCO