Some reasons to be cheerful
Although the outlook for the UK and the global economy is
uncertain, there are good reasons to believe that demand
for manufacturing technology equipment in the UK will
continue to be strong in 2012.Paul O’Donnell, head of

Although the outlook for the UK and the global economy is
uncertain, there are good reasons to believe that demand
for manufacturing technology equipment in the UK will
continue to be strong in 2012.Paul O’Donnell, head of
external affairs at the Manufacturing Technologies
Association (MTA) comments
What will the New Year hold for the
country’s economy and in
particular for manufacturing? It’s
a good question and one to which the finest
brains in economics are struggling to provide
a solid answer.
At first glance, and certainly if you believe
much of what you read in the papers, it
might be thought that the economy threatens
to cast a dark shadow over the year as Britain,
along with most of the rest of the developed
world, remains mired in a pattern of low or
no growth. Things are perhaps at their most
depressing in the Eurozone, the UK’s biggest
trading partner, with many countries either
in, or tottering on, the brink of recession.
But there are grounds for optimism in
some sectors including engineering-based
manufacturing.With sectors that enjoyed
remarkable runs in the last decade, such as
property and retail, becalmed, British
companies that actually make things are
taking up at least some of the strain.
Last year saw some remarkable recovery
figures from engineering-based
manufacturing. The Manufacturing
Technologies Association which represents
companies in the sector reported that orders
across the sector were running around 66%
higher than during 2010 for the first nine
months of the year.
The MTA’s President, Simon Pollard of
Kyal Machine Tools, said: “In the current
economic climate, the role of manufacturing
has become more important than ever.We
continue to show growth and we’re aiming
to pull the economy along.”
What is driving the growth in the
manufacturing technology market is the
growth that key end user industrial sectors
are experiencing in the UK. It’s no secret that
companies like Rolls Royce and BAE Systems
are huge players in the global aerospace
market but the country’s strength is more
broadly based than that – more so than
many people recognise.
For instance the automotive sector saw
significant growth in 2011 with vehicle
manufacturing rising 5.1% to 1,465,122 and
engine production rising 4.9% to 2,504,054.
Around 81.6% of the vehicles and 70.2% of
the engines were for export, record breaking
shares and proof that the UK’s industry is
capable of competing in the global market
place. As a result of this strength, the sector is
seeing significant investment with companies
as diverse as Jaguar LandRover,Mini and
Nissan all recently announcing significant
plant investment programmes.
And it’s not just cars and planes; In power
generation the UK has long been strong in
oil and gas but is now looking to take a lead
in offshore wind and has an ambitious
programme of nuclear new build in the
pipeline. Overall engineering is back to 2007
levels.
As a result of these market conditions, the
UK’s engineering-based manufacturing
sector is looking forward with confidence to
its biennial showcase – MACH. The
exhibition, the UK’s largest for
manufacturing technologies, celebrates its
100th birthday this year and has always been
at the forefront of technology.MACH 2012
is looking to be widest ranging staging of the
exhibition yet. By bringing together
traditional processes and the latest
technological advances, the 2012 show will
be a one-stop-shop for manufacturing.
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