What the manufacturing sector wants is stability
Few people expected yesterday's UK budget statement to address manufacturing-related issues strongly. With an election coming up at some time in the next few months, any governing political party might be forgiven for concentrating on helping individuals, especially those like senior citizens who get out and vote in numbers.
But then again, what the manufacturing sector wants is stability, and the current Chancellor, Gordon Brown, has delivered that in truckloads over the past few years. Even employers' organisations, whose politics are always to the right of most governments (and certainly to the right of this one), have found it hard to offer much in the way of criticism recently. I don't support the current government on certain major things it has done in the last two or three years (no prizes for guessing which). But on the economy, its record is awesome. Engineeringtalk has thousands of readers outside the UK who must wonder why their own governments can't match this country's record 50 quarters of consecutive growth. Inflation has stayed below the 2% target since 1998. Interest rates hit a 50-year low of 3.5 per cent in 2003. Unemployment has fallen to a 20- or 30-year low, while the number of people in work in this country is higher than it has ever been.
It's an extraordinary managerial achievement, and it would be a surprise if the government's arrogant and unpopular foreign policy results in it being voted out of office - but it is a possibility. The major problem the government now faces is that people take the economic achievements for granted. But we shouldn't: it was only 1992 when interest rates were 15%. So, what's the downside? Well, although some 2 million jobs have been created since 1997, almost 900,000 manufacturing jobs have gone. Clearly the figures above show that's not been a disaster for the economy as a whole, even if there's been little bright news for us in the industrial sector. However, manufacturing plays a crucial role for any nation of significant size, and if we can't compete with the Far East any longer when it comes to assembly, we must ensure that our design and innovation skills are given the support to compensate, including an investment in educating the next generation. There is plenty for future governments to do on that front.
But then again, what the manufacturing sector wants is stability, and the current Chancellor, Gordon Brown, has delivered that in truckloads over the past few years. Even employers' organisations, whose politics are always to the right of most governments (and certainly to the right of this one), have found it hard to offer much in the way of criticism recently. I don't support the current government on certain major things it has done in the last two or three years (no prizes for guessing which). But on the economy, its record is awesome. Engineeringtalk has thousands of readers outside the UK who must wonder why their own governments can't match this country's record 50 quarters of consecutive growth. Inflation has stayed below the 2% target since 1998. Interest rates hit a 50-year low of 3.5 per cent in 2003. Unemployment has fallen to a 20- or 30-year low, while the number of people in work in this country is higher than it has ever been.
It's an extraordinary managerial achievement, and it would be a surprise if the government's arrogant and unpopular foreign policy results in it being voted out of office - but it is a possibility. The major problem the government now faces is that people take the economic achievements for granted. But we shouldn't: it was only 1992 when interest rates were 15%. So, what's the downside? Well, although some 2 million jobs have been created since 1997, almost 900,000 manufacturing jobs have gone. Clearly the figures above show that's not been a disaster for the economy as a whole, even if there's been little bright news for us in the industrial sector. However, manufacturing plays a crucial role for any nation of significant size, and if we can't compete with the Far East any longer when it comes to assembly, we must ensure that our design and innovation skills are given the support to compensate, including an investment in educating the next generation. There is plenty for future governments to do on that front.
posted by Chris on Thursday, March 17, 2005
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