Positive data all round: but don't forget the service industry

Green shoots in this sector are just as important.

Last week’s manufacturing and service sector data caused many sighs of relief, in Threadneedle Street, in Westminster, and also in boardrooms up and down the country, as evidence built of a sustained economic recovery in the UK. However, as is often the case, many were noticeably more enthusiastic about information from the "making things" part of the economy, than from the "doing things" part.

Much of that interest in manufacturing can be attributed to the perception that manufacturers offer the solution to the UK’s trade deficit. However, while it is certainly be part of the solution, the service sector has an equally important part to play in ensuring the UK’s international competitiveness.

The UK leads the world in many specialist and high-quality areas of manufacturing, but we also possess genuine excellence in the services sector. The UK has world leaders in media, marketing, publishing, entertainment, accountancy, law, technology, scientific research, business consulting and more. Those are all industries capable of providing knowledge and expertise at an economically significant level for global consumption, and helping to secure a sustainable recovery for the UK economy.

And to laud our professional economy should not take away from those parts of the service economy that do not export – the retail parks, the high streets and the back offices of our country. Such enterprises are often condemned by those wont to complain that our economy is the weaker for having such a high proportion of service sector businesses, but this is wrong. A manufacturer that does not export still adds value to the economy, and the same is true of a wholly domestic service business.  The contribution of such a business is not measured in the value of exports, but in the efficiency of the business, and the support it can render to its customers in the wider economy. Such businesses are as worthy of investment as any other and, as we plan for a brighter economic future, we will need to plan for the long-term future of both manufacturing and services, and not just those services with an international operation.

So, how should we go about preserving and enhancing the UK’s success in services – to make sure that our international companies compete with the world’s best, and that our non-professional services add the maximum value to the economy? Well, in this case, service industries should take their cue from the manufacturing economy, where leaders have long called for a fundamental change in the skills and knowledge that young people take from their basic education.

Much of the UK’s education system is world-class but, if it is to sustain a world-class economy, then ongoing reforms will need to ensure a greater focus on science, technology, engineering, and maths (otherwise known as STEM) skills. In fact, that is one change that could help secure the successful future of both manufacturing and services. STEM skills are now just as important for service workers as they are for those in manufacturing. The business world is now so reliant on technology that few processes can be properly understood without some knowledge of the enterprise systems and applications that make them possible.

Furthermore, it would be a huge mistake to think that such understanding is only relevant to those destined to be managers and technicians. In my work, I see all levels of the service economy – one day I might be showing a publishing CEO how technology can help her company engage with new audiences, the next I might be advising a telecoms customer experience manager on how to keep his contact centre staff motivated and appropriately skilled. Whether speaking with MBA graduates or school leavers, my team and I see that the skills and knowledge required in the modern workplace are changing quickly.  Whether for a customer service representative being asked to advise on appropriate apps for a small-business phone user, or a lawyer who sees her case turn on the capabilities of data protection infrastructure, some level of technical knowledge is often indispensable.

Successful businesses and successful economies are not just built on good management, but on good work, and good work comes from a workforce with skills and knowledge appropriate to the world in which it operates. If we want the British workforce to be like this, then we should make sure that the foundation for such skills and knowledge is laid at the earliest opportunity.  Doing so will have equal benefits for both services and manufacturing, helping us preserve our global leadership in the creative and professional industries, and making sure that the consumer facing service businesses we use every day remain fit for purpose.

Photograph: Getty Images

Sanjiv Gossain is the SVP & Managing Director at Cognizant

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Boris Johnson is right about Saudi Arabia - but will he stick to his tune in Riyadh?

The Foreign Secretary went off script, but on truth. 

The difference a day makes. On Wednesday Theresa May was happily rubbing shoulders with Saudi Royalty at the Gulf Co-operation Council summit and talking about how important she thinks the relationship is.

Then on Thursday, the Guardian rained on her parade by publishing a transcript of her Foreign Secretary, Boris Johnson, describing the regime as a "puppeteer" for "proxy wars" while speaking at an international conference last week.

We will likely never know how she reacted when she first heard the news, but she’s unlikely to have been happy. It was definitely off-script for a UK foreign secretary. Until Johnson’s accidental outburst, the UK-Saudi relationship had been one characterised by mutual backslapping, glamorous photo-ops, major arms contracts and an unlimited well of political support.

Needless to say, the Prime Minister put him in his place as soon as possible. Within a few hours it was made clear that his words “are not the government’s views on Saudi and its role in the region". In an unequivocal statement, Downing Street stressed that Saudi is “a vital partner for the UK” and reaffirmed its support for the Saudi-led air strikes taking place in Yemen.

For over 18 months now, UK fighter jets and UK bombs have been central to the Saudi-led destruction of the poorest country in the region. Schools, hospitals and homes have been destroyed in a bombing campaign that has created a humanitarian catastrophe.

Despite the mounting death toll, the arms exports have continued unabated. Whitehall has licensed over £3.3bn worth of weapons since the intervention began last March. As I write this, the UK government is actively working with BAE Systems to secure the sale of a new generation of the same fighter jets that are being used in the bombing.

There’s nothing new about UK leaders getting close to Saudi Arabia. For decades now, governments of all political colours have worked hand-in-glove with the arms companies and Saudi authorities. Our leaders have continued to bend over backwards to support them, while turning a blind eye to the terrible human rights abuses being carried out every single day.

Over recent years we have seen Tony Blair intervening to stop an investigation into arms exports to Saudi and David Cameron flying out to Riyadh to meet with royalty. Last year saw the shocking but ultimately unsurprising revelation that UK civil servants had lobbied for Saudi Arabia to sit on the UN Human Rights Council, a move which would seem comically ironic if the consequences weren’t so serious.

The impact of the relationship hasn’t just been to boost and legitimise the Saudi dictatorship - it has also debased UK policy in the region. The end result is a hypocritical situation in which the government is rightly calling on Russian forces to stop bombing civilian areas in Aleppo, while at the same time arming and supporting Saudi Arabia while it unleashes devastation on Yemen.

It would be nice to think that Johnson’s unwitting intervention could be the start of a new stage in UK-Saudi relations; one in which the UK stops supporting dictatorships and calls them out on their appalling human rights records. Unfortunately it’s highly unlikely. Last Sunday, mere days after his now notorious speech, Johnson appeared on the Andrew Marr show and, as usual, stressed his support for his Saudi allies.

The question for Johnson is which of these seemingly diametrically opposed views does he really hold? Does he believe Saudi Arabia is a puppeteer that fights proxy wars and distorts Islam, or does he see it as one of the UK’s closest allies?

By coincidence Johnson is due to visit Riyadh this weekend. Will he be the first Foreign Secretary in decades to hold the Saudi regime accountable for its abuses, or will he cozy up to his hosts and say it was all one big misunderstanding?

If he is serious about peace and about the UK holding a positive influence on the world stage then he must stand by his words and use his power to stop the arms sales and hold the UK’s "puppeteer" ally to the same standard as other aggressors. Unfortunately, if history is anything to go by, then we shouldn’t hold our breath.

Andrew Smith is a spokesman for Campaign Against Arms Trade (CAAT). You can follow CAAT at @CAATuk.