New research highlights critical economic role of the mineral products industry
New research from leading economic consultancy Capital Economics has highlighted the critical role of the minerals products industry to the UK economy. The Capital Economics research has found that the UK Minerals Products Industry:
• Makes a Gross Value Added (GVA) contribution to the UK Economy of over GBP4bn pa – greater than creative industries such as film and video and not far short of motor vehicles and aerospace
• Generates an annual turnover of GBP9bn
• Has labour productivity 2.5 higher than the national average
• Supplies industries with a turnover of GBP400bn
• Is the largest supplier to the GPB120bn construction industry
• Pays over GBP1bn taxes annually
• Employs over 70,000 people
• Makes significant economic contributions throughout the UK
In a unique analysis, Capital Economics also assessed the significance of the industry by modelling the economic impact if the UK had no indigenous supply of aggregates, finding that relying on imported aggregates would have led to a loss of UK GDP of GBP20bn, or 1.5 per cent, over a 15 year period.
Commenting on the Capital Economics report, Nigel Jackson, Chief Executive MPA, said: “We wanted Capital Economics to carry out an independent assessment of the economic significance of our sector and have been surprised by the results. Even taking account of the 30% loss of output during the recession the industry’s Gross Value Added (GVA) contribution indicates the critical value of the industry to construction and many other important sectors. We are clearly an enabling sector and vital to the emerging UK industrial strategy.
“The Capital Economics analysis highlights the potential contribution we can make to economic growth and employment throughout the UK if construction activity improves in response to recently announced Government measures to support housing and infrastructure development.”
Nigel Jackson concluded “It is widely recognised that Construction and therefore the mineral products sector can help to boost UK economy recovery. Government has a critical role to play both through financing and enabling critical construction projects to proceed. Both roles are central to our long term growth prospects. MPA has repeatedly urged Government to minimise the cumulative tax and regulatory burden and free up the planning system to create conditions that genuinely support investment. The recent flurry of policy changes and announcements show little sign of accelerating growth and urgent focus needs to be given to delivering more action on the ground on housing, transport and energy infrastructure and the nationwide need for more repair and maintenance.”
