It is sometimes difficult to separate out the good news stories from the bad. 

The recent good weather has certainly added to a sense that things are not so awful and retail figures are showing that people are out buying the usual things such as food for the barbecue, drinks and appropriate clothing.

Whether we get a fillip from those who choose to 'staycation' remains to be seen.

The Institute of Directors have carried out a survey which suggests that they think things are getting better.

However, there are still structural problems that remain; not least in our ability to create and manufacture the sort of goods which can be exported to create growth based on goods which are seen to be desirable.

So, the recent news that manufacturing output fell by 0.8% in May is clearly not good news; as is the fact that the trade deficit has grown to over £2.4 billion.

In carrying out research for this blog I came across a statistic which shows that in May we exported more goods to European neighbours Belgium than we did to China.

To put this into starker comparison, Belgium has a population of about 11 million whereas China's population is over 1.3 billion and, as we know, rapidly rising.

As Lee Hopley who is chief economist at the boy which represents UK manufacturers EEF has suggested, there is a need for investment to ensure 'progress is made towards a better balanced growth.'

What this tells us is that the so called 'March of the makers' has yet to happen and that talk of a referendum to leave Europe will create dangers for companies exporting.

Given that the Eurozone is not likely to recover anytime soon it looks like the economy will continue to bump along for the foreseeable future.

We are told that house prices are recovering; though how much this is based on genuine confidence or due to George Osborne's 'Help to buy' scheme is hard to say.

It is certainly hard to see where the 'fresh blood is being injected into the market by new buyers as, according to statistics released by the ONS we are all being squeezed and the impact is most profoundly felt by young people who find it hard to get a decent job in the first place let alone one with good prospects.

The ONS's data shows that average workers' wages have fallen for 40 months as a result of low pay settlements, on average 1.3% though many would regard any rise as being good, and the corrosive effects of inflation which went up by 0.2% to an overall rate of 2.9% in June.

Many economic commentators are predicting the rate will continue upwards which, of course, will make the plight of those being squeezed - the majority of us - even worse.

It's no surprise that many are calling for policies to invest in supporting the development of jobs which give workers better pay and prospects than those which are temporary such as zero-hours contracts. As they contend, without them any recovery may prove as illusory as the recent good weather.

So, in the interests of balance, let's have some good news.

A report on this paper's website described how research by Birmingham-based company Wilmat shows that there is a renewed interest in products which purchasers know were made in this country.

The research, which was carried out among over 300 people from a range of sectors by Wilmat, showed that there is strong support for British manufacturing; there was a 79% positive response rate.

Teresa Hands who is the managing director of Wilmat stated here belief that

"The figures backed up a growing feeling at the company that they were witnessing a resurgence in interest in UK manufactured products at home, rather than overseas."


The acknowledgement by Hands that British purchasers' patriotism is not being matched abroad suggests that more needs to be done to develop the attractiveness of buying British goods by overseas purchasers.

It is worth remembering that this time last year we were almost in the midst of Olympic fever and that the opening and closing ceremonies provided a wonderful shop window for British goods.

One of the aspects of the closing ceremony that was particularly memorable was the celebration of British fashion which was performed to, appropriately, David Bowie's 'Fashion'.

So it was good to read the so called 'Greyfox' David Evans writing in  The Guardian about the 'exciting rebirth of British menswear manufacturing.'

As Evans writes, there are a number of 'remarkable' young entrepreneurs who, he explains, 'are rediscovering this almost-lost British heritage, making not only garments, but the wool and cotton fabrics from which they comprise - as well as a wide range of men's accessories.'

Importantly, according to Evans, the individuals who have developed these new companies are positively contributing to the British fashion industry through their impressive enthusiasm, knowledge and skill.

Crucially, what these new fashion entrepreneurs are producing is high quality but not as outrageously expensive as designer labels charge.

Even more importantly, they are being produced by British workers who are not being employed under the dreadful conditions which have been exposed in recent years in 'sweatshops' employing children working for a pittance.

Ironically, what Evans has discovered is opposite to the research carried out by Wimat:

"The British consumer has yet to fully appreciate what is happening. Many of the businesses I've talked to are finding their most enthusiastic market in Japan, where British menswear is a byword for quality and high standards, founded on a long heritage of garment design and manufacturing."


I cannot state with confidence that the workers being employed by these businesses are well-paid, but it seems that there is an increasingly good market for those with the requisite training and appropriate skills.

What seems absolutely essential, I believe, is that we dedicate more investment into training the next generation of workers; the young people who will provide the potential for consumption at home and produce the goods that will be bought by buyers abroad.

This is precisely what was recommended by Margaeto Pagano in Sunday's Independent , 'The car industry is on a roll. But our skills are in second gear.'

Pagano believes that what is really critical is that we move to a sense in which apprenticeships are seen as having equal value to degrees.

She cites the example of Jaguar's new F-type which was launched in May and selling at a rate of over 1000 a month and which she believes exemplifies the best in British design and manufacturing excellence.

Indeed, she believes that car manufacturing in this country has is in a very healthy position and as well as producing almost 1.6 million vehicles a year, employs over a million people.

That said, Pagano believes that there is a concern that too many components are produced abroad which could just as easily be made here.

But what is particularly concerning, she argues, is the need to ensure that there are sufficient young people with the right skills to underpin the renaissance of British manufacturing; she believes that there are only likely to be about half the number required.

Her solution is simple and unequivocal:

"If the young are to be inspired we need a new national careers service, and apprenticeships should be made at least equal to university degrees. It doesn't matter that foreigners own our car industry but it does matter that we make the cars here."


The trouble is, the messages that businesses receive are mixed and, because of austerity, the funding for careers advice has been cut.

We urgently need a national strategy for investment in the development of manufacturing; an industrial policy similar to that which exists in the one European country which was largely not seduced by financial services and the obsession with property; Germany.

Pagano states that any contemporary industrial policy should be based on being 'imaginative, collaborative and long term.'

Lord Heseltine made clear in his report last year No Stone Unturned that he believes it is possible to reclaim the reputation for excellence in making things.

As Lord Heseltine appreciates, this does not come about by accident and is achieved through judicious investment and the coordinated effort of all the stakeholders - education and industry working in partnership with government.

I fear that we whilst we continue muddling through our prospects for long-term and sustainable recovery will be undermined.

For everyone's sake, most especially the next generation, I sincerely hope that I am proved wrong.