Headline says it all? “It’s time to be optimistic about UK manufacturing”

An excellent review of a report by the Boston Consulting Group into global manufacturing competitiveness in the Daily Telegraph.  According to this “the UK is now one of the cheapest manufacturing locations in the western hemisphere and that Britain has improved its position relative to the eurozone, eastern Europe and even Asia over the past decade”.  Factors that have lead to this improvement over the last ten years are lower wage rises than other European countries, lower corporation tax, and more a flexible labour market, as well as a “cost explosion” in emerging economies such as China.  A key factor that will influence whether or not the UK can maintain this position will be energy costs.  The USA has improved its global competitiveness largely on the back of a 30% fall in energy costs due to the exploitation of shale gas (fracking).

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