Productivity harming manufacturing growth
10 Jun 2015
Majority of SMEs worried about productivity, while research claims that industrial standards could play key role in improving manufacturing output.
More than four-fifths of small and medium sized manufacturers (SMEs) in England need to improve productivity in the next six months if they are to achieve their growth plans, according to research published yesterday.
According to the Business Growth Service’s latest Manufacturing Barometer, 84% of respondents said productivity was a major impediment to their businesses growing.
“There has been significant talk about productivity and this latest report proves that it is still an issue for English manufacturers,” said Business Growth Service head of manufacturing Steven Barr.
“When we asked the same question two quarters ago, 80% felt their productivity needed to improve, yet just over half of those actually achieved their goal. This proves that there is plenty of room for improvement, but also shows a desire from our companies to not stand still.”
Standards growth
Results of the latest Manufacturing Barometer was published at the same time as a report by the Centre for Economics and Business Research (Cebr) demonstrating the economic benefits of industrial standards to the UK.
The study analysed the contribution of standards to UK labour productivity between 1921 and 2013 and surveyed 527 companies in seven key sectors: automotive, energy, aerospace and defence, food and drink manufacturing, ICT, construction, and life sciences.
Standards…open up the channels for boosting productivity and innovation
Cebr chief economic adviser Vicky Pryce
Findings show that standards contribute towards over a third (37.4%) of annual UK labour productivity growth, translating into 28.4% of annual GDP growth – consistent with findings from similar national level studies for France and Germany.
Analysis of the survey findings also found that standards drive export performance as evidenced by an annual exports rise of 3.2% across sectors, with close to 10% in the food & drink manufacturing sector alone.
“Standards play a vital and often invisible role in supporting economic growth and open up the channels for boosting productivity and innovation,” said Cebr chief economic adviser Vicky Pryce.
Scott Steedman, director of Standards at BSI, which sponsored the report, added: “It is very clear to see that standards are a key driving force in increasing productivity, enhancing export potential and raising the UK’s GDP.
“These are not simply bold statements but are backed up by independent research [that] has examined the habits of businesses of different sizes and sectors across the UK. The UK is a world leader in shaping best practice standards for business and industry that differentiate high performers from the rest of the market.”
