Did you know that the UK’s manufacturing sector supports 2.6million jobs, contributes a GVA of £224bn and accounts for 49% of all UK exports with six of the top ten export markets for UK goods remaining in the EU.
Manufacturing is a key part of the UK’s economic growth, driving investment, innovation and productivity, playing a vital role in upskilling and future-proofing the UK’s workforce.
249,000 people are employed in manufacturing across the South West and with higher than average regional and national salary averages, the sector is a highly attractive career option.
Cornwall’s 1100 manufacturers account for £7.4bn GVA and employ over 16,000 people with an entry salary 30% higher than the average wage in the county. With a diverse manufacturing scene covering everything from aerospace to power generation to food and drink and textiles, pharmaceutical to construction to the automotive industry, there is not a sector of industry across the world that Cornwall’s manufacturers don’t play a part in.
Skills shortage is a key concern for the industry and Cornwall’s Manufacturing Group (CMG) is tackling it head on with the award-winning CMG Academy. The UK’s first manufacturing academy, co-funded by the LEP and CMG, launched last year in collaboration with the Cornwall College Group and is now entering its second year of supporting youth into manufacturing and engineering.
Dedicated to addressing the current skill shortages in manufacturing, it helps pupils from local schools to develop their skills in manufacturing and engineering, resulting in a Level 2 Diploma in Manufacturing & Engineering. It also gives pupils access to Cornwall’s manufacturing companies in the form of tours and work experience, ensuring that all students leave equipped with the correct skillset to either continue their studies or gain an apprenticeship.
Jon Hurrell, CEO of the CMG says: “Parents are starting to see manufacturing as a skilled, high-tech and well-paid sector. Five years ago just 14% of parents would encourage their daughters into manufacturing careers, compared to 24% with sons. Today, now 36% would encourage their daughters and 44% would encourage their sons and we feel that the CMG Academy and Cornwall College are playing a key role in changing these perspectives.”
The CMG has also been responsible for the Developing Skills for Business programme, funded through the European Social Fund, it works with employers to design, develop and improve the relevance of skills training for manufacturing SME’s across Cornwall and the Isles of Scilly.
From factory floor to the classroom to the boardroom, CMG has been working with manufacturing companies across the county to enhance skills training for the industry.
Eric Nicholls, chair of the CMG says: “We see it as our role to develop manufacturing skills enhancement opportunities for every generation of manufacturer – across those who have been part of the scene for years and for those new to the sector.”
With 56% of people nationally thinking their local area would be worse off without manufacturing jobs, it highlights the growing understanding of the value and impact of the sector across public perception.
Nicholls adds: “Manufacturing has gone through a public face lift in recent years. People are starting to fully understand what it contributes to not only the economy today but also to tomorrow’s skilled workforce and we’re proud to play our part. The South West has a manufacturing output of £15.8bn. This sums is huge – putting this into context, the region has beaten the countries of Scotland and Wales.”
The recent campaign issued by the Cornwall Trade and Investment team, highlighting Cornwall’s rich heritage, location and geology as unique assets in the pursuit of net zero, also highlights the role of key manufacturers in the county. It is these manufacturers that are showcasing Cornwall as a green energy powerhouse, helping to play a role in the UK’s green energy transition. The CMG is also working with Cornwall Council towards net zero.
These campaigns, the investment and focus on what UK manufacturing can deliver across multiple industries have all played a part in the UK climbing the global ladder of manufacturing output from 9th to 8th in the last year, overtaking France.
However, public research has also shown that people think Britain is the 43rd manufacturing nation, so there is still a lot of work to do for audiences to understand the true depth of manufacturing influence on a global scale.
Eric Nicholls says: “We are truly proud to bang the drum for manufacturing, to sing it’s praises and rightly so. Locally, regionally and nationally we are achieving incredible things and that’s why we at Spiral, and many other local firms, recently celebrated National Manufacturing Day – despite the industry’s economic hurdles.”
Manufacturers are now liable for relatively more business rates payment than any other sector. The sector experienced a business rateable value change nearly four times greater (27.1%) than the national average and 44% of manufacturers say the current tax and regulatory regime is unfavourable for business.
Nicholls continues: “We need to introduce a business rate regime that enables productivity, the current system does not promote growth and with 30% of manufacturers saying they haven’t yet seen any tangible benefits from the Government’s levelling up agenda, there is clearly a lot of work that still needs to be done to support our sector.”
Frequent changes to policies on investment, R&D and development have significantly hindered businesses’ investment plans with many in the industry saying the government needs to invest in physical and digital infrastructure to enable local and national growth.
Nicholls concludes: “Manufacturing is critically important to everyone. Those in the industry have known this forever and colleagues across the spectrum of manufacturing influence at ground level and government level are doing all they can to secure ongoing growth for the industry.
It’s heartening to see public perception changing. Manufacturing plays a crucial role in the world’s infrastructure and it is our industry’s innovative minds in Cornwall, regionally and nationally, that will secure solutions for future generations to come.”