A new report by the International Festival for Business 2016 and Oxford Economics says that British manufacturers are forecast to increase their productivity by 15.5% over the next five years, helping to increase the value of exports by 35%.

EEF, the manufacturers’ organisation, welcomes the findings, saying they make a ‘powerful case’ for the Chancellor to help solve Britain’s productivity crisis by targeting Government support towards encouraging growth in high value manufacturing.

Paul Raynes, director of policy at EEF, says: “British manufacturers are shown to be more productive than other parts of the economy and, as such, hold the key to improving the UK’s productivity puzzle. This report emphasises just why the Chancellor must focus his attention on areas that will deliver the biggest wins and prioritise support for sectors, such as manufacturing, that have a strong track record on productivity improvements.

“Manufacturing is projected to deliver 40% of Britain's productivity gains over the next decade. In the past five years output per hour in manufacturing has grown four times faster, on average, than that across the whole economy. In the years running up to the financial crisis UK manufacturers were increasing rates of productivity growth in line with the best in the world and, since 2007, the sector has remained ahead of most EU competitors, including Germany. We have a strong track record to build upon, which is why Government and business must work together to close the productivity gap and why investment in skills, science, research and infrastructure will be key.”