Monday, March 21, 2011

[IWS] Work Foundation (UK): MORE THAN MAKING THINGS: A new future for manufacturing in a service economy [14 March 2011]

IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor----------------------
Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau


Work Foundation (UK)


More Than Making Things: A new future for manufacturing in a service economy [14 March 2011]

A Knowledge Economy programme report

Andrew Sissons


[full-text, 64 pages]



Today’s manufacturers don’t just sell products – they sell solutions, experiences and outcomes. The rise of manu-services provides an ideal opportunity for the UK to lead the world, helping the UK move towards a rebalanced economy. But manu-services are challenging and competitive, and the government must act now to ensure that UK businesses can take advantage of this new approach to making things.



2 More than making things

Executive summary 3

Introduction 5

1. The changing nature of British manufacturing 8

2. The rise of manu-services 21

3. Challenges for manu-service firms 37

4. Manu-services and smaller firms – a special cause for concern? 47

5. Towards a policy agenda for manu-services 52

Securing a bright future for manu-services 62


Press Release 14 March 2011

Coalition must back “manu-services” as vital force for manufacturing revival


Following George Osborne’s call for a “manufacturing revival”, a report published next week (14 March) by The Work Foundation argues that if the Coalition is to safeguard the future of UK manufacturing, it must go beyond the traditional view that manufacturing is just about “making things”. The emergence of manu-services – combinations of innovative products with value-adding services – now provides a prime opportunity for the UK to become a world leader in manufacturing. The report shows how the government must act now to unlock the huge growth potential of manu-services by placing it at the heart of its growth agenda.


The UK can no longer compete internationally in terms of production alone without severe reductions in wages and living standards. However, UK manufacturers now earn 15-20% of their revenue from services. The rise of this manu-service business model has the potential to create jobs and ensure the future of UK manufacturing in an increasingly competitive global market.


The report demonstrates that while the UK currently trails behind countries such as Germany, Japan and France in hi-tech manufacturing, its biggest strength now lies in the ability to integrate services into complex manufacturing processes. Evidence suggests that 28% of UK manufacturers have now moved into this area, driven by the changing structure of the global manufacturing industry and the demands of increasingly sophisticated customers.




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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
Telephone: (607) 255-2703                
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