Everyone is saying the same thing: business is back on track with order books filling up, telephones ringing with enquiries and a feeling of optimism in the air. However in the same breath those in the industry are also concerned that margins are lower than ever, materials and overheads keep increasing and things aren’t still what they were before the run on the banks back in 2007.
One factor in this almost back to normal economy has been highlighted in a report this month by the global economist firm the Boston Consulting Group. They say the UK is now one of the cheapest manufacturing locations in the western hemisphere and that Britain has improved its position relative to the Eurozone, eastern Europe and even Asia over the past decade. And one of the reasons is wages.
In the last ten years in France wage costs are up 52 percent and in Italy they have risen by 62 percent say the Boston economists, but in Britain wages have risen just 16 percent”
In the last ten years in France wage costs are up 52 percent and in Italy they have risen by 62 percent say the Boston economists, but in Britain wages have risen just 16 percent.
Another factor they say is that Britain’s corporation tax cuts have also helped contain overall costs, and our labour market remains far more flexible than that of many other rival locations. If you’re a worker on a zero contract, a short-term contract or have been made to go self-employed by your employer that flexibility is not always welcome.
The Office of National Statistics says the economy overall is back to pre-recession levels but manufacturing is still lagging behind where it was in 2008.
Our industry is generally split into the service industries sector and manufacturing which means although things are better, (with apologies to Mercer Ellington and Ted Persons) in the words of the old song, “things ain’t what they used to be.”
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