A report that has been released by Lloyds Bank has shown that the UK could be left behind by the other G7 countries in terms of productivity. The report published by Lloyds Bank is called âUnderstanding the Puzzleâ and demonstrates that they lack of investment being made by the UK into technology, people or innovation is having a knock on effect on productivity of the manufacturing industry and could see us being left behind by the other countries in the G7 who are.
Productivity is a vital marker for the economic issues, and the UK has recorded low levels in comparison to the other G7 members. It is of great importance that a solution to this low productivity level is found in order to resolve any issues. Manufacturing firms in the UK understands that productivity is a challenge faced by the wider economy. A number of firms have implemented plans that will lead to a boost in productivity, however it is felt that there is still not enough investment to overcome barriers in productivity growth.
A lack of investment has been found as a common factor in the report, and is the most common in terms of preventing productivity. 47% of the companies involved in the research has planning on freezing spending levels, with 12% planning cuts, and only 41% aiming to boost investment. From these mixed responses it would appear that investment is a main concern for the manufacturing industry.
The Government investing more into science innovation and skills would help improve productivity levels, and it has also been suggested that tax incentives to promote levels of investment would also be beneficial.
In terms of manufacturing, skills and infrastructure would still require investment, however it is thought that the largest part of any investment would go into new production machinery.