news analysis - manufacture in london
WORKERS, OCTOBER 2003 ISSUE
Manufacturers and unions in London have joined together to put manufacturing back on the government's agenda by publishing The Case for Manufacturing in London: A Blueprint for Action.
The report, by Made in London, a business organisation, and the South East Region of the TUC, shows the importance of manufacturing to the London economy and makes recommendations for action.
Manufacturing in London employs some 287,000 workers and produces almost 10% of Britain's entire manufacturing output. There are around 16,000 firms and 27,000 manufacturing units, including Nestle, Pirelli, Gillette, Tate and Lyle, Fords Dagenham, Coca Cola, Visteon in Enfield and West Ferry Printers on the Isle of Dogs. Printing and publishing is now the biggest sector, followed by food and metal goods.
Much London manufacture is high performance, high skill and high value - the sort that economists say Britain needs. At present Britain faces poor investment levels and skills shortages. London has particular problems such as spiralling property prices, problems with transport infrastructure and a lack of a strong regional policy on manufacturing.
Frances O'Grady, deputy general secretary of the TUC, criticised the government's "hands-off" approach to industrial strategy and called for a new strategy "for a new industrial age". As the report points out, manufacturing remains the key driver for economic growth.
Vulnerable
Assertions that Britain can survive on a service-based economy are not credible. London, in particular, would be highly vulnerable if it depended on financial and other service sectors. The capital lost 432,000 manufacturing jobs between 1978 and 2000, a reduction of 63%. Decline was particularly steep in engineering. But manufacturing still has an output of £15 billion a year, representing 9% of London's GDP and remaining the second-largest sector after financial and business services.
Some strategies suggested include assistance for London-based manufacturers to bid competitively for elements of public procurement contracts (such as the Tube and Crossrail), reform of the planning process to prioritise manufacturing on suitable sites over building houses on them, increases in skills training and more government support for research and development.
There should also be investment in new river crossings to aid the development of the Thames Gateway. The report highlights the close connection between the service sector and manufacturing. According to the CBI, 2.4 million service sector jobs depend on manufacturing nationally. More gloomy statistics show that manufacture in London is set to decline, with predictions of a decline of between 21% and 40% of jobs up to 2016.* The report is available online at www.tuc.org.uk