Glass productsTOTAL UK EMPLOYMENTEmploys around 7,000 people directly and at least a further150,000 in related industries across the supply chain, inretail, research and development, marketing and officeadministration. 107THE STATE OF THE SECTORThe glass industry is a high tech industry, with a combinedvalue in the UK of approximately £2.5 billion. 108 Along withstones and ceramics, glass accounts for 3 per cent of UKexports (about £19.6 billion). 109PROBLEMS FACING THE SECTORThe glass industry is affected by numerous issues, includingproduct innovation, quality standards and legislation.Analysts have described how “it is an industry whichnever stops changing and developing across the wholeglass supply chain.” 110 Constant innovation is needed tohelp ensure that UK glass produces remain competitiveworldwide. Glass industries are investing significantresources in intensive R&D programmes to develop newways to use glass and to make available new products.Unfortunately however the industry has identified skillsgaps in technical and ‘soft’ skills. This is down to both anageing work force and the industry having difficulty inattracting young people. EU demand for UK glass productshas also either been weak or has only seen modest growthin the last four years, as shown in Figure 19.“If increases continue there will be some partialclosures and redundancies at least. At worst, firmswill transfer production from the UK to elsewhere”The EU andEnergy PolicyGlass manufacture is an energy intensive industry. For yearsthe glass industry has sought to mitigate the amount ofdamage caused by high energy bills, investing heavily inenergy efficiency. Between 1979 and 2003 the amount ofenergy required to melt a tonne of glass has fallen from3.2MWh per tonne to 1.5MWh. 112However, despite these improvements, the UK glassindustry remains susceptible to the problems generatedby expensive energy. In 2006 EIUG warned that the gasprice spike had contributed to 6,000 job losses in the glasssector. 113 In a recent report British glass also pointed outthat “energy prices and the price of raw materials remaina cause for concern throughout all glass manufacturingsectors.” 114THE IMPACT OF HIGH ENERGY BILLS“The Government has said they will extend thecompensation for energy intensive industries forthe cost of the Carbon Price Floor and EU emissionstrading system to 2019-2020, however, the glassindustry is not entitled to benefit from this unlessthey widen the terms to include us.”- British Glass 115- British Glass 111107 Talent Retention, “The Glass Academy @ British Glass”, found at108 Talent Retention, “The Glass Academy @ British Glass”, found at109 BIS, Industrial Strategy: UK sector analysis, September 2012, p.10, foundat 110 British Glass, found at 111 British Glass press statement, found at 112 British Glass, found at 113 CIVITAS, R. Lea & J. Nicholson, British Energy Policy and the threat tomanufacturing industry, p.11, found at 114 British Glass, found at 115 British Glass press statement, found at 34
INDUSTRY CASE STUDY 3.1.5Figure 19: British glass exports to EU 2009-12 116Figure 20: UK glass production by output (2008) 117116 British Glass, found at 117 British Glass, found at 35
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