Making Scotland's Future - recovery plan for manufacturing - draft: consultation

Fair Work commitment

The manufacturing sector, its workers and those tasked with supporting them face the greatest challenge in generations. What began as a public health crisis has become a global economic crisis – growth has stalled, businesses have had to close and there have been many job losses with the likelihood of more to come. The pandemic has also highlighted, and in many cases worsened, the inequalities in our society, with those with the least before the crisis often worst affected by both the health and economic impacts.

That is why Fair Work is more important than ever and must be at the heart of our economic recovery and renewal. The Scottish Government’s dedication to this agenda is long-standing and is shared by partners across the public, private and third sectors, trade unions and others who will help us develop and deliver this recovery plan. The principles of Fair Work will guide us collectively as we focus on the actions set out in this plan.

Infographic Text

16 Scottish firms are manufacturing PPE and hand sanitiser, helping to tackle the Covid pandemic and creating jobs

Manufacturing exports were worth £30 billion and accounted for 61% of trade with EU¹

Manufacturing was worth £12.5 billion in GVA to the economy1 and employed 169,000 people²

Manufacturing output contracted by 23.1% over the last year³

83% of manufacturing businesses applied to the furlough scheme

Manufacturing businesses across UK expect sales, investment and employment to all decrease over each of the next four quarters

Nearly half (47%) of all manufacturing businesses have reported a decrease in turnover as a result of Covid-19⁴

Notes:

1. 2018 figures

2. 2019 figures

3. 2019 Q2 vs 2020 Q2

4. Expected turnover vs actual turnover.

Sources: Scottish Government Quarterly GDP Index; Business Register and Employment Survey; Scottish Annual Business Statistics; Export Statistics Scotland; ONS Business Impacts of Coronavirus Survey (BICS) update for Wave 15 (5 and 18 Oct) published on 30 Oct 2020: Scotland level results. The manufacturing sector is defined by the Standard Industrial Classification (SIC 2007) section C. Bank of England: Monthly Decision Maker Panel data (Sept 2020).

A large network of support is available to manufacturing companies across Scotland, including those illustrated here.