Sharing in Growth CEO Andy Page has been invited to join a government Productivity Leadership Group.
Andy is one of a number of business leaders asked to advise on delivery of Chancellor George Osborne’s productivity plan –Fixing the foundations – launched with the summer budget.
Fixing the foundations sets the agenda for the whole of government over the parliament to reverse the UK’s long-term productivity problem and secure improved living standards and quality of life. While raising productivity is an acknowledged global challenge, a large and widening productivity gap exists between the UK and leading advanced economies. Every OECD country with higher average wages than Britain also has higher productivity levels.
Andy will be working with Juergen Maier, CEO of Siemens UK, Andrew Witty, CEO of GSK, Jo Lopes, Head of Technical Excellence, Jaguar Land Rover and Tony Walker, Deputy MD of Toyota UK to look at productivity challenges in UK manufacturing.
They will examine a number of problems and likely solutions, as well as the correlation between management capability and productivity.
UK manufacturing is a key sector contributing around 10 per cent of total output in the economy (c£150bn) and is ranked eighth in the world in terms of its output.
However, the UK’s position in management quality in manufacturing organisations lies below the “Premier League” of countries led by the US (which the UK lags by around 60%), but also including Germany and Sweden.
Research shows that just a small increase in management capability is associated with significant increases in productivity, as well as benefits to profitability, sales growth, market value and survival.
“According to government estimates, if Britain was to match US levels of productivity, our GDP would be boosted by 31% – equivalent to £21,000 a year for every household in the country. The aerospace industry is leading the way in UK manufacturing and, at Sharing in Growth, all 40 existing beneficiaries are committed to an average 50% increase in sales per person productivity gains.”
Andy Page – CEO Sharing in Growth