Manufacturers could emerge from downturn in better shape

It is just possible that a change in the UK's business landscape, post-recession, could result in a mini-revival for the manufacturing sector.

This is the optimistic view of economic analyst Deloitte in its latest Economic Review, which considers what the post-recovery economy might look like.

Happily, Deloitte economic adviser, Roger Bootle sees no reason why the UK's contracting manufacturing sector cannot stage a mini-revival.

Which is good news for the distribution sector and goes against the view, expressed in some quarters, that the UK's manufacturing sector has shrunk too much for it to survive in the long term.
 
And Roger Bootle puts some number on his predictions.

Over the next decade, manufacturing's share of the economy could temporarily grow from 11% to 13%.

What has changed is that the financial sector's share could shrink from 8% to more like 5% as a result of the downturn in the global financial services market.

Government initiatives to increase investment in manufacturing technologies, outlined in last week's Budget, will also have an impact.

Far from a contraction, Bootle predicts that a sustained period where the pound is undervalued will help exports and this could see increased production of aircrafts and even cars.