Manufacturing industry in crisis Why has manufacturing sector plunged into a decline?

Manufacturing industry in crisis The manufacturing sector has been in recession since January 2001 with outputs declining month by month. Manufacturing is about making products from raw materials by hand or machinery. There is sometimes confusion about which companies belong to the troubled manufacturing sector or to the service industry which support manufacturers and sometimes even sprung from them . an example of this is TNT which offers a logistics service for manufacturers. Why has manufacturing sector …

…manufacturing output to increase again by 2003 although there is no certainty. Many economists predict in the long term, there will be a shift into more high-tech manufacturing which is less labour intensive as UK will find it increasingly difficult to compete with lower wages in places such as China and India. The CBI's Mr Scott argues that manufacturing underpins the economy by supporting many of the service industries, such as distribution, transport and financial companies.