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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The Women's March against Trump matters – but only if we keep fighting

We won’t win the battle for progressive ideas if we don’t battle in the first place.

Arron Banks, UKIP-funder, Brexit cheerleader and Gibraltar-based insurance salesman, took time out from Trump's inauguration to tweet me about my role in tomorrow's Women’s March Conservative values are in the ascendancy worldwide. Thankfully your values are finished. . . good”.

Just what about the idea of women and men marching for human rights causes such ill will? The sense it is somehow cheeky to say we will champion equality whoever is in office in America or around the world. After all, if progressives like me have lost the battle of ideas, what difference does it make whether we are marching, holding meetings or just moaning on the internet?

The only anti-democratic perspective is to argue that when someone has lost the argument they have to stop making one. When political parties lose elections they reflect, they listen, they learn but if they stand for something, they don’t disband. The same is true, now, for the broader context. We should not dismiss the necessity to learn, to listen, to reflect on the rise of Trump – or indeed reflect on the rise of the right in the UK  but reject the idea that we have to take a vow of silence if we want to win power again.

To march is not to ignore the challenges progressives face. It is to start to ask what are we prepared to do about it.

Historically, conservatives have had no such qualms about regrouping and remaining steadfast in the confidence they have something worth saying. In contrast, the left has always been good at absolving itself of the need to renew.

We spend our time seeking the perfect candidates, the perfect policy, the perfect campaign, as a precondition for action. It justifies doing nothing except sitting on the sidelines bemoaning the state of society.

We also seem to think that changing the world should be easier than reality suggests. The backlash we are now seeing against progressive policies was inevitable once we appeared to take these gains for granted and became arrogant and exclusive about the inevitability of our worldview. Our values demand the rebalancing of power, whether economic, social or cultural, and that means challenging those who currently have it. We may believe that a more equal world is one in which more will thrive, but that doesn’t mean those with entrenched privilege will give up their favoured status without a fight or that the public should express perpetual gratitude for our efforts via the ballot box either.  

Amongst the conferences, tweets and general rumblings there seem three schools of thought about what to do next. The first is Marxist  as in Groucho revisionism: to rise again we must water down our principles to accommodate where we believe the centre ground of politics to now be. Tone down our ideals in the hope that by such acquiescence we can eventually win back public support for our brand – if not our purpose. The very essence of a hollow victory.

The second is to stick to our guns and stick our heads in the sand, believing that eventually, when World War Three breaks out, the public will come grovelling back to us. To luxuriate in an unwillingness to see we are losing not just elected offices but the fight for our shared future.

But what if there really was a third way? It's not going to be easy, and it requires more than a hashtag or funny t-shirt. It’s about picking ourselves up, dusting ourselves down and starting to renew our call to arms in a way that makes sense for the modern world.

For the avoidance of doubt, if we march tomorrow and then go home satisfied we have made our point then we may as well not have marched at all. But if we march and continue to organise out of the networks we make, well, then that’s worth a Saturday in the cold. After all, we won’t win the battle of ideas, if we don’t battle.

We do have to change the way we work. We do have to have the courage not to live in our echo chambers alone. To go with respect and humility to debate and discuss the future of our communities and of our country.

And we have to come together to show there is a willingness not to ask a few brave souls to do that on their own. Not just at election times, but every day and in every corner of Britain, no matter how difficult it may feel.

Saturday is one part of that process of finding others willing not just to walk a mile with a placard, but to put in the hard yards to win the argument again for progressive values and vision. Maybe no one will show up. Maybe not many will keep going. But whilst there are folk with faith in each other, and in that alternative future, they’ll find a friend in me ready to work with them and will them on  and then Mr Banks really should be worried.