Siemens boss: UK manufacturers losing out to Germany
28 Apr 2011
London – The latest CBI manufacturing survey and manufacturing production statistics suggests that the UK’s manufacturing sector is continuing to grow.
However, for this to be sustainable the UK must however address the levels of investment in plant, machinery and automation, according to Juergen Maier, managing director, Siemens Industry Sector.
“Despite record output levels, 2011 investment levels in these areas is predicted to be 25% down on 2008 and even lower than in 2009. In Germany by contrast investment levels are considerably up, which means that their medium-term productivity improvements will outpace [the UK’s],” said Maier.
“UK productivity improvements will not be able to compensate for raw material price increases and hence our manufacturing output prices will need to increase above levels in Germany, for example. The result is we lose out on global competitiveness and the gain the exchange rate has recently provided for us,” the Siemens boss added.
