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Re-industrialising Scotland 
Stephen Boyd, STUC 
Decent Work, Dignified Lives 
15 October 2014
Manufacturing output as % of GDP
World’s biggest manufacturing nations 
by output in 2011 
12000 
10000 
8000 
6000 
4000 
2000 
0 
35 
30 
25 
20 
15 
10 
5 
0 
Output per capita 
Rank/% of national output 
Output rank % of national output Output per capita
How to explain UK’s relatively poor 
performance? 
• Lack of political support 
• Endemic short-termism 
• The ‘imperial overhang’ 
• Complacent attitude to ownership and 
control 
• skills 
…not primarily a story of high costs…
Hourly labour costs in euros, EU 28, 
2013 
60 
50 
40 
30 
20 
10 
0 
Whole Economy Industry Services
Protection of permanent workers against 
individual and collective dismissal, OECD 2013 
2.50 
2.00 
1.50 
1.00 
0.50 
0.00 
Individual dismissals Collective dismissals
Product market regulation and barriers 
to trade and investment, OECD, 2013
“Indeed, the manufacturing sector is 
also where the world’s middle classes 
take shape and grow. Without a vibrant 
manufacturing base, societies tend to 
divide between rich and poor – those 
who have access to steady, well-paying 
jobs, and those whose jobs are less 
secure and lives more precarious. 
Manufacturing may ultimately be 
central to the vigor of a nation’s 
democracy”. 
Dani Rodrik, 2011

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Reindustrialising Scotland