to pay greater attention on supporting the manufacturing sector since the productivity growth in the industry has been higher than rest of the economy. Between 1979 and 2019, output per job in manufacturing grew by 0.64 per cent, in comparison to the average 0.36 per cent across the economy as a whole.
In terms of wages, in 2018, median earners in the North West working in manufacturing earned 19 per cent more than the average worker, while in the North East, an even higher rate of 22 per cent was reported.
Accordingly, Onward urged the government to provide long-term funding in the industry, along with tax incentives, reduced cost of electricity and improved 5G coverage, to support the growth of smart factories, as the think tank’s deputy director Will Holloway called for a “manufacturing renaissance in the UK”.
Meanwhile, the 50 Tory representatives from The Northern Research Group insisted on infrastructure investment in the North, as the group’s Chair Jake Berry called on the government “to show the North some love”.
“Onward’s manufacturing report provides a clear plan for the future. For too long, we have just accepted deindustrialisation as inevitable. It isn’t. Levelling up requires skilled manufacturing jobs in the private sector. To get those, we need a plan to drive manufacturing growth and to have the ambition to achieve fundamental transformation. This report gives us an outline of how to get there,” he said.
Responding to the mounting pressure, a spokesperson for the government noted that Whitehall is committed to “levelling up every region” and creating well-paid jobs across the UK.
“Our plan for growth provides a blueprint for the UK to drive economic growth in every region and sector, including manufacturing. This will create jobs and support British industry as we build back better out of this pandemic,’ the spokesperson said. “We keep all taxes under review and the Government will continue to help manufacturing to adapt and grow, including through research and development tax reliefs to incentivise companies to invest in new technology.”
