Manufacturers punching above their weight

Companies are the ‘lifeblood of future business opportunities’

Scotland’s manufacturing industry plays a central role in sustaining and growing our economy. It’s a broad church accommodating industries from chemicals to food & drink, textiles and shipbuilding.

Forty years ago the sector represented around 40% of the economy and accounted for around 30% of all employment. These days, it accounts for 12% of the economy with just 9% of the workforce – around 190,000 people.

But it packs a huge punch. It’s a real wealth generator for Scotland, delivering over 50% of our international exports and 54% of our expenditure on research and development. Those employed by our manufacturing companies are at the heart of a highskills, high-wage economy with earnings in the manufacturing sector 30% higher than average. It is where innovation happens – the lifeblood of future business opportunities.

A strong manufacturing core to an economy is also essential to building resilience from global trade winds. That is why the Scottish Government has launched its vision-setting document: ‘A Manufacturing Future for Scotland’.

The action plan is based on a commitment to raising productivity through increased investment and innovation coupled with visionary leadership.

We need the most talented individuals who will inspire industry to integrate new technology and innovation, adopt new methods and processes, and truly internationalise their businesses.

Scottish Enterprise’s Scottish Manufacturing Advisory Service (SMAS) has a key role to play in supporting the action plan and its national conference taking place on 8 September at the Westerwood Hotel in Cumbernauld will be a fantastic opportunity for manufacturing leaders to get involved and help you understand the steps your business can take to improve its productivity.

In light of the UK EU referendum results, this is more important than ever. Scotland voted to remain in the EU and Scottish Enterprise's immediate priority is to ensure we and our partners do everything possible to support Scottish businesses as negotiations continue.

Now more than ever, it is important that industry and the public sector work together to build an environment that supports the case for investment and a culture of improvement.

Nick Shields is director of the Scottish Manufacturing Advisory Service at Scottish Enterprise

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WEALTH GENERATOR: Scotland’s manufacturers are central to the economy