Impact of virus on manufacturing could cost the economy £35 billion
MANUFACTURING WILL not return to its pre-coronavirus growth figures until 2022, a new report predicts.
The pandemic’s impact on the sector cost the economy a potential £35.7 billion this year alone, according to the manufacturing group Make UK and Santander bank.
Firms responded to the pandemic by switching to personal protective equipment (PPE), face masks and social distancing signage.
Make UK chief executive Stephen Phipson said: “History has shown us that a strong industrial base provides the foundations needed to create a prosperous society.
“However, the UK has unfortunately become culturally tone deaf to the idea that manufacturing matters and can provide solutions to the challenges that we face, something the sector has amply shown during this crisis.
“A new digital, greener and more sustainable economy will emerge from this with an opportunity to catapult manufacturing, science and engineering once again to centre stage in the UK.”
Paul Brooks, of Santander, added: “Our manufacturers are the beating heart of the UK economy, and although sobering, this detailed analysis is vital to understand how businesses can rebuild as restrictions are eased.
“While Covid-19 presents the most testing time for manufacturers, their aptitude to handle shock and change for the better is enduring, and we stand ready to support them.”
Last week, the Government announced £73.5m of investment into the automotive industry to develop green technologies and safeguard jobs.
The money will be shared among 10 projects to develop cutting-edge technology such as the next generation of electric taxis, cars and vans, as well as recyclable batteries, advanced electrical systems and lightweight components.
The Government hopes the money will help the automotive industry recover following the shutdown.
Our manufacturers are the beating heart of the UK economy.
Paul Brooks, of Santander bank.