In a time where jobs have been lost, wages have been lowered and businesses gone bust. It must surely be a relief to know that our economy is starting to recover. It has not been a spectacular or fast recovery but we are slowly working towards it. After a challenging recession, it should encourage us to know that British manufacturing is on the rise! In 2014 more than 700,000 jobs were created in the private sector; and since 2010, 100,000 jobs have been created in the private sector in Wales. As a Welsh furniture manufacturing business, we are proud to have been a part of it.
For the rest of the UK manufacturers announced accelerated growth in terms of new contracts and production. Staffing levels have risen for the 21st successive month, adding jobs at a pace of around 5,000 a month (The Guardian). A reason for some of these improvements is due to the slash is current oil prices which have more than halved since last summer. Oil prices have an effect on our economy because it puts more money in the private sector profit margins. For example, an export business will find the cost of exporting is cheaper, thereby increasing profit. Manufacturers can keep prices competitive because the import of goods is cheaper and companies like airlines can add more flights or slash ticket prices. All in all greater profit margins mean increased job opportunities, thereby boosting our economy and manufacturing industry.
At present, the domestic market remains the main growth contributor which means the British public are investing in British business. There are signs of improvement overseas but with a poor demand from the Eurozone, progress will be slow for the United Kingdom. However, slow does not mean stopped and progress is progress, no matter how small.
As a furniture manufacturing business in Wales, we too have felt the effects of the economy and we are pleased that the UK is seeing a turnaround in output. As Bloomberg states ‘we have seen the best annual performance from the UK Manufacturing Industry since 2010 which climbed by 2.7% across the year’. This comes as a welcome relief and we are looking forward to seeing a boost in the manufacturing industry, because it is the backbone of our economy.