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- A 200-Year British Manufacturing Sector Faces Collapse With Devastating Knock-on Effects Expected.
A 200-Year British Manufacturing Sector Faces Collapse With Devastating Knock-on Effects Expected.
The Blurbb
April 29, 2024
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A 200-Year British Manufacturing Sector Faces Collapse With Devastating Knock-on Effects Expected.
Britain's rich history of railway innovation and engineering prowess once positioned it as a global leader in train manufacturing. British trains have been synonymous with quality and reliability for nearly two centuries, from the iconic locomotives of the Industrial Revolution to the sleek express models of the modern era. However, despite the rich transportation history, recent developments leave the future of Britain's train-making industry hanging in the balance.
Recently, the once-manufacturing behemoth that made 14,000 locomotives for India alone between 1854 and 1947 has faced unprecedented challenges and has now been reduced to just two main factories, teetering at the cusp of closure. The two factories, Alstom's Derby facility and Hitachi's Newton Aycliffe factory are already warning that they will face a definite closure due to the decline in new orders and the erratic nature of the tender process.
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The prospect has left thousands of skilled workers facing uncertain futures and raised questions about the viability of maintaining a large-scale rail manufacturing capability in the UK. In the case of Alstom, more than 1,300 jobs are at risk at its Litchurch Lane site in Derby, and redundancy consultation is already underway for its around 550 permanent employees.
The delicate balance between market forces and government intervention lies at the heart of the issue. While Britain's open-market approach has facilitated competition and innovation, it has also exposed domestic manufacturers to fierce competition from abroad. Countries like France, Germany, and Japan have nurtured their train-making industries into national champions, leaving Britain's once-proud manufacturers fighting for survival.
Given the gravity of the situation and considering the billions of taxpayer funding that go into supporting the sector, some people question whether it would be prudent to include trains in the same protected category as warships, as they are at the centre of the country's commuter economy. This would allow the taxpayer money to support local manufacturing and jobs instead of importing trains from other countries.
The debate over whether to save Britain's train industry also lies in the fact that it is not merely economic but also a matter of national importance. Besides the economic implications, the sector represents a vital component of the country's manufacturing base, significantly impacting jobs, skills, and regional growth.
For instance, Oxford Economics says the UK rail sector supported £42.9 billion of economic production in 2019. It supports over 710,000 jobs in related sectors, and for every £1 of activity within the railway system, an additional £2.50 of income is generated elsewhere in the UK economy. In at least 12 constituent regions of the UK, productivity and wage levels in the rail transport system and rail supply sector are above average compared to the economy-wide average.
As the government grapples with deciding how best to support the industry, industry insiders complain that successive transport ministers have dragged their feet on signing off new orders, significantly upping the pressure on the already bleak situation. Mark Harper, the Transport Secretary, insists that orders are a matter for operators and rolling-stock lessors and has said that individual manufacturers cannot be guaranteed work.
However, the calls for intervention are growing louder. Industry insiders, trade unions, and political leaders have urged ministers to seize the opportunity to safeguard Britain's train manufacturing capability for future generations. Some, like Unite, are calling for urgent action to secure the future of the Derby plant and have offered proposals, including a joint task force involving the government, Alstom, the local council, and the union.
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They hope such a task force will smoothen the tender processes and increase government investment and political commitments to prioritise domestic manufacturing. This would be a shot at averting the looming collapse of train manufacturing in the UK.
Yet, amidst the uncertainty, there remains hope for a brighter future. With upcoming infrastructure projects such as the High Speed 2 line on the horizon, the industry has opportunities to bounce back and reclaim its position as a global leader in train manufacturing. However, decisive action is needed to ensure that Britain's train-making industry does not become just another chapter in the history books.