Food and Drink Manufacturing: Productivity Performance - PAGE HIDDEN

Productivity of the food, beverage and tobacco sector grew 10 per cent cumulatively during 2007- 2017 (output per hour), although there has been a slowdown in productivity in later years with productivity stalling at 0 per cent during 2012-2017 (compared to 10 per cent in 2007-2012) [1] .

Food, beverage and tobacco is lagging behind transport equipment (automotive, aerospace and rail) who achieved 40 per cent over the same period (2007 and 2017) – this is potentially due to the higher levels of automation and highly integrated vertical supply chains within the sector.

International Comparison

International comparisons show that UK food and drink manufacturing performs better than its European counterparts with the exception of France [2]. The United States food and drink industry is significantly more productive than the UK [3] , with each UK employee contributing less than half of the GVA that US employees did at last count. The US food industry's exceptional performance can be linked to greater economies of scale, use of automation and typically longer working hours than international competitors.

[1] Labour productivity: Q4 2017, output per hour, ONS

[2] Data & Trends of the European Food and Drink Industry, 2015 Eurostat data (latest available data)

[3] U.S. Census Bureau, 2015 Annual Survey of Manufactures

Last reviewed: 23 Aug 2018