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Improving workforce and managerial skills levels are vital for the success of manufacturing firms and the UK economy as a whole.
Research by the Institute of Public Policy Research (IPPR), claims manufacturing will shrink to around 10 per cent of UK GDP and 5 per cent of employment by 2050 if present trends continue.
At present, manufacturing accounts for 20 per cent of Britain's overall output and 16 per cent of direct employment.
Richard Brooks, IPPR Research Fellow in Economics, welcomed the Government’s recent commitment set out in the Skills White Paper to raising the age restriction on Modern Apprenticeships (MAs), but criticised a lack of detail regarding the delivery of MAs.
"There is little detail in the recent Skills White Paper about how this will be achieved and what funds will be made available," he said. "Modern Apprenticeships are particularly appropriate for the manufacturing sector, where there are good quality courses and a clear need for people with these sorts of skills.
"The DTI and DfES should give priority to the manufacturing Sector Skills Councils and pilot generous projects in this area," added Brooks.
The key recommendations of the report are:
- The existing age limit on manufacturing sector MAs should be lifted without delay.
- The Government must maintain the attractive UK corporation tax regime in the face of emerging fiscal pressures if business investment is to recover
- Firms should not be compelled to increase their levels of employee training, but should receive more effective help in planning their training needs.
