Make UK is urging the Labour Government to introduce a formal industrial strategy, similar to the one originally developed under Theresa May’s Conservative Government.
The Conservative’s Industrial Strategy was put in place to bolster sectors where the UK has a competitive edge, including aerospace, pharmaceuticals, luxury automotive manufacturing, and emerging technologies such as AI, nuclear small modular reactors (SMRs), quantum computing, and floating offshore wind turbines.
Adam Marshall, the former Director General, British Chambers of Commerce said:
The developing Industrial Strategy represents a crucial first milestone in a renewed partnership between business and government, working together to create the conditions for future growth.
The Conservative Government identified ten pillars considered to be of utmost importance to drive forward the industrial strategy across the entire UK economy:
- Investing in science, research and innovation – UK must become a more innovative economy and do more to commercialise our world leading science base to drive growth across the country.
- Developing skills – UK must help people and businesses to thrive by: ensuring everyone has the basic skills needed in a modern economy; building a new system of technical education to benefit the half of young people who do not go to university; boosting STEM (science, technology, engineering and maths) skills, digital skills and numeracy; and by raising skill levels in lagging areas.
- Upgrading infrastructure – UK must upgrade our standards of performance on digital, energy, transport, water and flood defence infrastructure, and better align central government infrastructure investment with local growth priorities.
- Supporting businesses to start and grow – UK must ensure that businesses across the country can access the finance and management skills they need to grow; and we must create the right conditions for companies to invest for the long term.
- Improving procurement – UK must use strategic government procurement to drive innovation and enable the development of Britain’s supply chains.
- Encouraging trade and inward investment – government policy can help boost productivity and growth across our economy, including by increasing competition and helping to bring new ways of doing things to the UK.
- Delivering affordable energy and clean growth – UK needs to keep costs down for businesses, and secure the economic benefits of the transition to a low-carbon economy.
- Cultivating world-leading sectors – UK must build on our areas of competitive advantage, and help new sectors to flourish, in many cases challenging existing institutions and incumbents.
- Driving growth across the whole country – UK must create a framework to build on the particular strengths of different places and address factors that hold places back – whether it is investing in key infrastructure projects to encourage growth, increasing skill levels, or backing local innovation strengths.
- Creating the right institutions to bring together sectors and places – UK must consider the best structures to support people, industries and places. In some places and sectors there may be missing institutions which we could create, or existing ones we could strengthen, be they local civic or educational institutions, trade associations or financial networks.
The latest annual analysis by Make UK shows Britain’s manufacturing sector contributed £217 billion in output to the economy last year, supporting 2.6 million jobs. Firms are currently investing more too, with £38.8 billion worth of investment taking place last year.
Make UK’s report, ‘UK Manufacturing: The Facts 2024’ reveals that UK manufacturing jobs are better paid than most, with average salaries rising by £2,281 to £38,769 this year. In comparison, salaries in services and the wider economy average at £34,698 and £35,404 respectively.
The US remains the UK’s top export destination for manufactured goods, worth £61.8 billion and up from £56.7 billion last year, with Germany and the Netherlands rounding off the top three. In terms of imports, it’s Germany who we bought the most manufactured goods from, spending £73.8 billion over 12 months.
As for the regional picture, the North West of England remains the leading manufacturing area of the UK, with output worth £29.5 billion, and is closely followed by the South East at £26.1 billion.
Make UK says it is focused on creating the most supportive environment for UK manufacturers to “thrive, innovate and compete.” They say they will continue urging the new Government to reintroduce the formal industrial strategy.
Source: Make UK – UK Manufacturing Report 2024.
