Strong engineering industry drives UK productivity

Jan 29, 2016

Britain’s strong engineering industry is driving productivity, with benefits across the economy, according to new research published in Engineering UK 2016 The State of Engineering. Engineering is 68% more productive than the retail and wholesale sector, with apprentices making a significant contribution.

The report, produced by EngineeringUK to analyse the engineering industry’s capacity and capability for growth, shows that this resilient sector also has a positive impact on other areas of the economy. For every new job in engineering, two more are created outside of the sector and every £1 GVA generated in engineering generates £1.45 elsewhere. However, the gap between supply and demand for people with engineering skills is still large enough to trigger widespread concern for the long term future.

Over 27% of total UK GDP is generated by engineering, amounting to £445.6bn and turnover for engineering has grown by 3.4% to £1.21tn. Employment in engineering has grown to over 5.5 million and the industry now supports 14.5 million jobs overall.

Paul Jackson, Chief Executive of EngineeringUK, says: ‘Engineering is a growth industry that has the potential to continue to drive productivity in the UK. This is a great opportunity, tempered only by concern about the need to train many more engineering if we are not to be left behind by countries like South Korea and Germany’.

Nick Boles MP, Minister of State for Skills, says: ‘These shortages are compounded by insufficient numbers of young people, especially girls, choosing a career in engineering. I am convinced we will only overcome these challenges if all those with an interest in UK engineering commit to greater collaboration and partnership.’

Chairman of Crossrail, Terry Morgan CBE says: ‘In the past ten years, engineering-related apprentices have generated £12bn for the UK economy. Having started my career as an apprentice and seen first-hand what apprenticeships can deliver, I’m delighted that their very significant contribution has been recognised. If we are to double the number of apprentices in engineering, more needs to be done to highlight the opportunities apprenticeships can offer young people.’

Through the Tomorrow’s Engineers programme the engineering community is working to inspire the next generation of engineers by helping young people from all backgrounds understand the variety, excitement and opportunities presented by a career in engineering.

On behalf of the engineering community EngineeringUK calls for collaborative action across government, engineering businesses, the education sector and the wider engineering community to realise these recommendations:

  • A doubling of the number of young people studying GCSE physics as part of triple sciences.
  • A two-fold increase in the number of Advanced Apprenticeship achievements.
  • A doubling of the number of engineering and technology and other related STEM and non-STEM graduates who are known to enter engineering occupations.
  • Provision of careers inspiration for all 11-14 year olds.
  • Support for teachers and careers advisors delivering careers information. 


The Engineering UK 2016 The State of Engineering (#EngUK16) report is available at www.engineeringuk.com/Research

National and regional breakdown of UK engineering

   

UK

North East

North West

Yorks & The Humber

East of England

Number of engineering enterprises

609k

17k

57k

41k

66k

Number of people employed in engineering enterprises

5.5m

168k

511k

418k

535k

Projected demand for people with engineering skills (2012-2022)

1.82m

67k

193k

130k

178k

Turnover in engineering enterprises

£1.2tn

£30bn

£101bn

£64bn

£106bn

   

London

South East

South West

East Midlands

West Midlands

Number of engineering enterprises

100k

105k

55k

41k

49k

Number of people employed in engineering enterprises

813k

981k

479k

392k

501k

Projected demand for people with engineering skills (2012-2022)

243k

291k

161k

138k

150k

Turnover in engineering enterprises

£268bn

£241bn

£77bn

£64bn

£96bn

 

 

UK

England

N Ireland

Scotland

Wales

Number of engineering enterprises

609k

531k

14k

42k

22k

Number of people employed in engineering enterprises

5.5m

4.8m

120k

409k

203k

Projected demand for people with engineering skills (2012-2022)

1.82m

1.55m

46k

147k

71k

Turnover in engineering enterprises

£1.2tn

£1.0tn

£18bn

£109bn

£34bn

 

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