Electronics drives manufacturing growth says Make UK
19 Mar 2019
Britain’s electronics sector fuelled nearly two thirds of the country’s manufacturing growth last year despite representing a mere 5% of overall output, claims a report.
The study by manufacturers’ organisation Make UK (formerly the EEF) in partnership with Santander suggests electronics generated a turnover of £19.4 billion in the period and a total of £8.4 billion in gross value added (GVA).
Paul Brooks, head of UK manufacturing at Santander UK, said: “The UK electronics sector continues to punch above its weight and, with the fast growth in technology, is well placed to cement itself as a core manufacturing sector.”
The performance represents a substantial year on year transformation for a sector which had gone through an era of decline just over a decade ago before reporting growth of 4.4% in 2017 and 12.4% in 2018.
The UK electronics sector continues to punch above its weight and... is well placed to cement itself as a core manufacturing sector
Paul Brooks, head of UK manufacturing, Santander UK
However, the authors warn that electronics continues to import much more than it exports: the sector imports 50% of supply and exports over a quarter (26%) of output, making it the most import intensive in UK manufacturing. In 2017, the electronics trade deficit stood at £22.6 billion.
They recommend that, to develop market performance, the sector should target opportunities such as 5G and digital medicines as well as export demand from Asia and the Middle East. Asia counts for a fifth of UK electronics exports – up from 14% in 2007 – with the 10 highest growth export markets all located in the region.
Chief economist at Make UK Seamus Nevin said: “This great British success story is well poised to continue to prosper with even bigger opportunities for growth coming from the burgeoning market for smarter devices, the rise of digital medicines and the roll-out of 5G. But the sector will need support from Government and finance if it is to capitalise on the export opportunities coming from Asia and elsewhere.”
