The public sector spends nearly GBP 125 billion, or ten per cent of GDP, each year purchasing goods and services in the UK economy. This report focuses on whether the rules and practices relating to procurement of goods and services by public authorities hinder or help UK manufacturers in obtaining public contracts.

The public sector spends nearly £125 billion, or ten per cent of GDP, each year purchasing goods and services in the UK economy. The manufacturing sectors most heavily involved in selling to Government include food, paper and printing, pharmaceuticals, construction products, aerospace and environmental technology. Following on from two previous Committee reports which have examined issues of concern to the UK manufacturing industry (relating to skills shortages in UK manufacturing industries (HCP 493-I, session 2006-07, ISBN 9780215033970) and government support for exporters (HCP 557, session 2006-07, ISBN 9780215034380)), this report focuses on whether the rules and practices relating to procurement of goods and services by public authorities hinder or help UK manufacturers in obtaining public contracts. The report argues that the Office of Government Commerce (OGC) should have powers to enforce the implementation of best practice guidance on procurement policy, and recommends that OGC guidance on the use of public procurement to further social policy and equality aims does not go far enough and should be reviewed. It also highlights the need for better trained and higher quality procurement officials throughout the public service, supported by floating teams of experts in particular procurement areas.

World-renowned economist Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, explains that we have an opportunity to shape the fourth industrial revolu­tion, which will fundamentally alter how we live and work. Schwab argues that this revolution is different in scale, scope and complexity from any that have come before. Characterized by a range of new technologies that are fusing the physical, digital and biological worlds, the developments are affecting all disciplines, economies, industries and governments, and even challenging ideas about what it means to be human. Artificial intelligence is already all around us, from supercomputers, drones and virtual assistants to 3D printing, DNA sequencing, smart thermostats, wear­able sensors and microchips smaller than a grain of sand. But this is just the beginning: nanomaterials 200 times stronger than steel and a million times thinner than a strand of hair and the first transplant of a 3D printed liver are already in development. Imagine “smart factories” in which global systems of manu­facturing are coordinated virtually, or implantable mobile phones made of biosynthetic materials. The fourth industrial revolution, says Schwab, is more significant, and its ramifications more profound, than in any prior period of human history. He outlines the key technologies driving this revolution and discusses the major impacts expected on government, business, civil society and individu­als. Schwab also offers bold ideas on how to harness these changes and shape a better future—one in which technology empowers people rather than replaces them; progress serves society rather than disrupts it; and in which innovators respect moral and ethical boundaries rather than cross them. We all have the opportunity to contribute to developing new frame­works that advance progress.

Technology and globalization are threatening manufacturing’s traditional ability to deliver both productivity and jobs at a large scale for unskilled workers. Concerns about widening inequality within and across countries are raising questions about whether interventions are needed and how effective they could be. Trouble in the Making? The Future of Manufacturing-Led Development addresses three questions: - How has the global manufacturing landscape changed and why does this matter for development opportunities? - How are emerging trends in technology and globalization likely to shape the feasibility and desirability of manufacturing-led development in the future? - If low wages are going to be less important in defining competitiveness, how can less industrialized countries make the most of new opportunities that shifting technologies and globalization patterns may bring? The book examines the impacts of new technologies (i.e., the Internet of Things, 3-D printing, and advanced robotics), rising international competition, and increased servicification on manufacturing productivity and employment. The aim is to inform policy choices for countries currently producing and for those seeking to enter new manufacturing markets. Increased polarization is a risk, but the book analyzes ways to go beyond focusing on potential disruptions to position workers, firms, and locations for new opportunities. www.worldbank.org/futureofmanufacturing

How well are European firms responding to the new opportunities for growth, and in which global value chains are they developing these new activities? The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing in Europe's growth agenda.