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European Union

Britain's Hidden Strength: Unlocking the Potential of Its High-Tech Industries

Strategic Insights

— 2 min read

Brexit was never designed to be an economic success story, yet Britain has discovered a secret competitive advantage in complex manufacturing. Despite the challenges posed by the pandemic, supply chain disruptions, and Brexit-related changes, top-end design, customization, niche engineering, and technological integration have emerged as the UK's strong suits. A new Civitas report, The Quiet Triumph of British Engineering, highlights this success and predicts future growth in these areas.

Key Takeaways:

  • Britain's complex manufacturing sector has found significant success in high-tech industries, particularly in aerospace engineering, car manufacturing, and naval engineering.
  • The UK's expertise in top-end design, customization, niche engineering, and technological integration has become a significant competitive advantage in global markets.
  • Aerospace engineering is a major success story, with a guaranteed business backlog of £241bn and an estimated 12 years of constant work ahead.
  • The sector is expected to create 40,000 jobs by the 2030s, with Rolls-Royce predicting an eight per cent growth in manufacturing per year for a decade.
  • Northern Ireland remains a world leader in airline seat manufacturing, with recent premium-seating start-ups Unum and Alice Blu Aero showcasing the industry's confidence in innovation.
  • The UK's contribution to the Airbus A350, the world's best-selling wide-body airliner, is extensive, with multiple components made in the UK.
  • Trade policy should prioritize Britain's competitive advantages, focusing on industries that attract the most demand and suit the country's expertise.

Statistics:

  • £241bn: The estimated business backlog in aerospace engineering, equivalent to 12 years of constant work.
  • 40,000: The number of jobs expected to be created in aerospace engineering by the 2030s.
  • £10bn: The value of BAE Systems' deal to export five Type 26 frigates to Norway, a significant victory for British naval engineering.
  • £20bn: The investment in car manufacturing in 2023, with £3bn from Nissan and £15bn from Jaguar Land Rover.
  • 8,530: The order backlog for the Airbus A350, set to triple over the next four years.
  • 17 per cent: The UK's global market share in aerospace.
  • 75 per cent: The highest percentage of aerospace exports from outside the EU over the past 25 years.

Sources:

  • [Source 1] - BBC News - The (https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bbc.co.uk%2Fnews%2Fuk-politics-eu-referendum-36355564&data=05%7C02%7C%7C77d8695228ba45312b6908de06708b55%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638955277723396120%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=U%2BMaC%2FpV7aW8o3WSO0Ndf6vZjwTDD24nmLVlzlHcaAc%3D&reserved=0) Treasury estimates.
  • [Source 2] - The Chemical Engineer - Cornish Lithium gets greenlight to build UK's first plant to recover lithium from hot water (https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.thechemicalengineer.com%2Fnews%2Fcornish-lithium-gets-greenlight-to-build-uk-s-first-plant-to-recover-lithium-from-hot-water%2F&data=05%7C02%7C%7C77d8695228ba45312b6908de06708b55%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638955277723410226%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Rhr11q6sLJhH4HIO6%2BepZFwUwepFAjaE5dSp2sLdiQw%3D&reserved=0)
  • [Source 3] - BBC News - Airbus (https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bbc.co.uk%2Fnews%2Farticles%2Fc0eqr15dwy5o&data=05%7C02%7C%7C77d8695228ba45312b6908de06708b55%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638955277723424122%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=rGEWQx77%2FU9lfchuyVSlqBpgRIOa0NnSYGn98k5GsEM%3D&reserved=0)
  • [Source 4] - The Guardian - Australia - Aus-tus funding UK jobs, Rolls-Royce (https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.theguardian.com%2Fworld%2F2024%2Fmar%2F25%2Faustralia-aukus-funding-uk-jobs-rolls-royce&data=05%7C02%7C%7C77d8695228ba45312b6908de06708b55%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638955277723437822%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=4vj3CPj1kBvZBA%2FJR%2B39X6lbcD5WQOy3pLSqy9px3BU%3D&reserved=0)
  • [Source 5] - BBC News - Airbus (https://aus01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.bbc.co.uk%2Fnews%2Farticles%2Fc74l9p2x3dxo&data=05%7C02%7C%7C77d8695228ba45312b6908de06708b55%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638955277723561360%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=HVQHKjiyq74vwTUgMDzzWcb3UleuK3vm%2ByPr0SSYzxw%3D&reserved=0)

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