"UK factories slump in July" - the future of Manufacturing in Britain?

"UK factories slump in July" read a headline today.

Factory output is reported to have slumped for the first time in two years, further dampening Britain’s faith in Georges Osborne’s programme of austerity.

However, is this as worrying as it seems? ...

After all, the manufacturing industry only makes up 13% of the UK’s GDP.

This, rather than the “slump” itself, is definitely an issue of concern.

At large, this is because financial and support services, the greatest exponents of British industry, are renowned for their fickle nature (as most recently highlighted by events in 2008/09).

Hence, the health of British manufacturing seems to be of growing, if not unparalleled , importance and whilst, as a nation, we still boast trade surpluses in certain areas, mainly pharmaceuticals & aerospace, this is not representative of the general trend; declining employment, output & investment (in manufacturing).

So what is the answer, if at all?

We could just simply continue to hold hegemony in service & financial markets & rely on far eastern producers to supply us with manufactured commodities.

However, I, and presumably many others, think change is long overdue. Although placing renewed emphasis on manufacturing might go against our comparative advantage in the aforementioned markets, we leave ourselves over exposed to fluctuating external factors if we continue to import so vastly.

Thus, increased manufacturing output must be promoted, albeit just to lessen the strain on our other industries.

There are various ways, none of which are quick, in which this can be achieved. One, in theory, is education (the quality of our human capital).

Too many students enrol in the ‘romantic’ subjects at School and College (indeed, I was guilty of this). Consequently, few are able to go on to read “rigorous” degrees, such as Mathematics or Physics, at University, as put by Graeme Paton, education editor at the Guardian.

This, in part, accounts for our slight manufacturing industry & pertinent skills deficit.

Hence, the onus is on the Government, Schools & Universities to encourage students to study more technical disciplines.

Courses like Midwifery are heavily subsidised for those studying them at University. I believe this should also be common place for degrees like Aerospace and Engineering to name but a few.

Conversely, is a reformation of the entire Secondary and Upper Education system needed? Under this, it would be possible for students to gain credible qualifications through apprenticeships and other means, rather than solely through the classroom.

Although the number of apprenticeships in the UK has increased recently, thanks to companies like BAE systems, these are rarely as highly valued as an A level. Hence, addressing this imbalance is necessary, especially if we want to hold dear to our claims of being a true meritocracy.

On the flip side, there might, in fact, be a positive outcome of the recession; students have begun to increasingly fret over gaining entry into University (as a result of nationwide cut backs) and subsequently many have elected more ‘challenging’ subjects to study at A level, in the hope that this will stand them in better stead. For instance, at A level, economics is now the third quickest growing course.

Either way, what is your opinion on the matter?

Is greater education in the ‘hard’ subjects (maths, sciences etc) really the answer?

Others point to innovation, giving our goods an edge over competitors.

Or is change needed at all?