Motor industry 'drives £12.5bn growth in UK production'

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UK production grew 3.7% to £355 billion as at the end of 2013, according to analysis of the latest official PRODCOM Report from the Office of National Statistics (ONS) by Santander Corporate & Commercial.

Driven by the manufacturing of motor vehicles, transport equipment and food, the value of total UK manufacturer's product sales increased £12.5bn to £355bn from £342bn in 2012.

At the end of 2013, UK manufacturer's product sales were 8.4% higher than at the start of the economic crisis in 2008, according to Santander Corporate & Commercial.

The analysis reveals that the production of games and toys was the fastest-growing manufacturing sector in the UK, with production worth £273 million in 2013 compared to £155m in 2012; a year-on-year increase of 76.1% and a six-year high for the sector.

Other fast-growing sectors included the manufacture of assembled parquet flooring (66.7% growth); the manufacture of starches and starch products (23.8% growth); and the manufacture of motor vehicles (20.9% growth).

The biggest absolute increases were seen in the UK's more established industries, with sales of motor vehicles and trailers increasing by £5.7bn (20.9%); sales of other transport equipment rising by £3.6bn (15.2%); and food sales increasing by £2.8bn (4.5%).

Overall, the manufacture of motor vehicles is the largest UK manufacturing sector in terms of production, with £33.9bn produced in 2013 compared to £28bn in 2012, a year on year growth of 20.9%.

Charles Garfit, head of manufacturing at Santander Corporate & Commercial, said: "This analysis shows clearly that UK productive industries are in good health. While the markets have concerns about the falling oil price, this is actually great news for producers and SMEs, who will see reduced costs as a result. This positive trend for growth in UK manufacturing could well continue should the oil price remain at a subdued level."


Top ten fastest-growing manufacturing sectors in the UK

Sector

Value of sector (£m)

Y-o-y growth

2012

2013

Manufacture of games and toys

155

273

76.1%

Manufacture of assembled parquet floors

3

5

66.7%

Manufacture of starches and starch products

319

395

23.8%

Manufacture of motor vehicles

28,004

33,860

20.9%

Tanning and dressing of leather; dressing and dyeing of fur

248

296

19.4%

Manufacture of other plastic products

3,537

4,218

19.3%

Manufacture of kitchen furniture

1,094

1,301

18.9%

Manufacture of builders ware of plastic

3,368

3,960

17.6%

Manufacture of air and spacecraft and related machinery

17,265

20,274

17.4%

Manufacture of central heating radiators and boilers

803

923

14.9%

Source: SCC analysis of ONS PRODCOM Report


Top ten largest UK manufacturing sectors in terms of production

Sector

Value of sector (£m)

Y-o-y growth

2012

2013

TOTAL

341,985

354,521

3.7%

Manufacture of motor vehicles

28,004

33,860

20.9%

Manufacture of air and spacecraft and related machinery

17,265

20,274

17.4%

Manufacture of pharmaceutical preparations

11,495

11,274

-1.9%

Manufacture of other parts and accessories for motor vehicles

8,794

8,650

-1.6%

Operation of dairies and cheese making

6,792

7,094

4.4%

Other printing

7,722

6,993

-9.4%

Processing and preserving of meat

5,835

6,192

6.1%

Manufacture of bread; manufacture of fresh pastry goods and cakes

5,752

6,062

5.4%

Manufacture of instruments and appliances for measuring, testing and navigation

5,658

5,626

-0.6%

Manufacture of metal structures and parts of structures

5,463

4,408

-1.0%

Source: SCC analysis of ONS PRODCOM Report