A REGIONAL manufacturing leader has urged the Government to introduce a clear long term industrial strategy to ensure the sector underpins higher UK productivity.

Andy Tuscher, Yorkshire regional director of manufacturers' body EEF, said while business is the driver of economic growth, government is the enabler and should support industry with relevant legislation.

His call follows a new EEF report on manufacturing productivity which says the sector has the potential to be a major driving force behind improving the UK’s productivity performance, but must tackle its own concerns about lagging behind global peers.

Produced in association with technology company Infor, the report reveals that more than six in ten UK manufacturers (64per cent) achieved productivity growth in the past two years, while 57 per cent expect to make further gains in the next two.

Manufacturing’s productivity growth outpaced that of the service sector and the UK economy as a whole in the two decades to 2014, suggesting that manufacturing is not the source of the UK’s weak performance and creating a strong argument in favour of rebalancing the economy.

Even so, nearly half of manufacturers (49per cent) say that UK manufacturing productivity lags behind competitor nations. EEF said this indicates that there is more firms can do to boost their productivity, particularly as they are increasingly competing on a global stage.

Andy Tuscher said: “While the UK economy as a whole has an issue with productivity, this report suggests that manufacturing is not the problem child.

"In the past two decades UK manufacturing has outpaced the rest of the economy for productivity growth and more than six in ten manufacturers have grown their productivity in the last two years. This is the strongest indication yet that a more balanced UK economy could also be a more productive economy.

“Many of our industry’s dynamic practices, such as continuous improvement, are clearly paying dividends. But it certainly is not job done. UK manufacturers are acutely aware that in a global economy productivity needs to be world-class and this means becoming even better at adopting and investing in major new advances in technology.

“Manufacturing has the potential to be a major driving force behind improving the UK’s productivity performance. But while business is the driver, Government is the enabler, and this report highlights the real need for policies and a long-term, comprehensive industrial strategy to support businesses as they strive to reach their productive potential.”