Manufacturers’ Alliance Response to Industrial Strategy – Invest 2035
The Manufacturers' Alliance
Inspiring Progressive Manufacturing Leaders to break through the boundaries of possibility.
On 14th?October 2024 the UK government released a Green Paper, Invest 2035: the UK’s modern industrial strategy?outlining their plans to deliver a sustainable strategy to support the growth of the UK economy. They invited a response, via a government online portal, from interested parties to input their thoughts and ideas into the Strategy; businesses, trade unions, local and developed leaders, experts and international partners.
Invest 2035 is great news for UK manufacturing as the Industrial Strategy targets 8 growth driving sectors (based on their productivity performance and growth potential): Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services.
Based on this call to work more collaboratively, Gary Sheader , Founder and Managing Director at The Manufacturers' Alliance has led a review of the Invest 2035 Green Paper and has collated ideas and priorities to respond to government with. This response was presented to the UK government via their portal on 22nd November 2024.
Why Has the Manufacturers’ Alliance Responded to the Invest 2035 Green Paper?
Our core purpose is to support our customers in developing the leadership knowledge and skills required to lead and grow a modern manufacturing business they are proud of. To utilise our community of progressive leaders and catalogue of good practices to enable them to learn from others who have been there before and got the t-shirt. And ultimately enable them to feel supported in realising their dreams and vision of the future.
With the manufacturing community and the many leader’s we work with at the core, and through the great work that we all do as a team facilitating change for the better, we are not only creating a stable economy in the UK built on manufacturing and engineering, we aim to change people’s lives and society for the better.
This Industrial Strategy hinges on several strategic initiatives that needs the input of manufacturing business leaders and people who care about the future of the UK. Waving our fists at the TV screen will not instigate change. If we are to address current challenges and leverage emerging opportunities together, we need to have our voices heard and present a case of what good government support could look like.
That is why we felt the need to respond… as an Alliance.
What is the Government Looking to Achieve with Its Industrial Strategy?
The UK government's?Invest 2035?industrial strategy aims to achieve several key objectives over the next decade:
The strategy also aims to address complex issues such as skills development, technology adoption, and infrastructure planning to create a conducive environment for business investment. Hence the call for input from industry to better understand the context of the growth challenges faced and investment aspirations.
What are the Top 5 Recommended Enablers to Support the Industrial Strategy
The government portal had 35 questions to answer in relation to the Invest 2035 Green Paper. Based on the common themes that emerged from interviews with the Manufacturer’' Alliance community and intelligence gathered over recent years, we feel there are 5 key enablers to a successful Industrial Strategy.
1.????? Support Manufacturing Businesses That Are Advancing the Sector and Society
Advanced manufacturing is a critical area for the UK's industrial strategy but is lacking a clear definition that is meaningful to the UK manufacturing community. We feel that establishing an industry wide definition and clear benchmarks as to what constitutes an advanced manufacturing business is a crucial first step.
Our recommendation would be to focus on supporting manufacturing businesses that are advancing the sector, the economy and society as a whole. Not just businesses with a high growth rate and a healthy bottom line, but those that demonstrate modern leadership, sustainable long term growth models, a commitment to research and development (R&D), productivity-enhancing technologies, and Net Zero solutions. Businesses that contribute to economic growth and also to societal advancement by looking after their employees and protecting the environment for future generations.
The UK government's Invest 2035 strategy underscores the importance of supporting high-growth sectors, including advanced manufacturing to drive long-term economic growth. This alignment with the need to establish clear benchmarks and support businesses with modern leadership and sustainable growth models is vital.
2.????? Utilise Technology and Data to Provide Clarity on Future Opportunities
Access to market intelligence is another cornerstone of a great strategy but is a data set that a lot of manufacturers in the UK find challenging to locate and collate. Providing a mechanism that identifies future global growth opportunities and where emerging markets are being established would provide the UK manufacturing community with a vital piece of the strategy jigsaw that is often missing or lacking.
Utilising our amazing universities, research facilities, and trade teams in the UK, we could be leveraging AI-driven models, to provide real-time data on market opportunities, that would significantly enhance the strategic planning capabilities of small and medium-sized enterprises (SMEs).
Having a market intelligence portal that provided real-time, high-quality data in identifying key growth sectors would support UK manufacturing leaders in responding in an agile way to their strategic planning. Making this data accessible to SMEs can help them develop and deploy sustainable business strategies, ensuring they are well-positioned to capitalize on emerging opportunities.
Once a model like this has been successfully designed and implemented, there are many more opportunities to utilise the platform to support the growth of advanced manufacturing, such as, identifying skills providers, researching funding and support available, and possible a map of the whole UK manufacturing ecosystem and capabilities.
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3.????? Introduce a National Advanced Manufacturing Team
The establishment of a National Advanced Manufacturing Team is proposed to offer support to advanced manufacturers’ and bridge the gap between high level data and the deep level of intelligence required for a sustainable long-term strategy. This team would be responsible for supporting the deployment and effectiveness of the industrial strategy.
Similar to the role previously played by the Manufacturing Advisory Service (MAS), a National Advanced Manufacturing Team would be a critical component in the Invest 2035 strategy in providing targeted support to SMEs and ensure the effective deployment of the key objectives aligned with the industrial strategy.
This team would also build intelligent maps of the whole ecosystem, highlighting and tracking emerging sectors and technologies, identify and mitigate risks, and ensure that data and intelligence are publicly available and transparent.
The current support landscape for SME manufacturers is complex, and lacks transparency. The majority of manufacturers we meet are not aware of what support options are available, and where to go for help and advice when they need it. A National Advanced Manufacturing Team would be a great conduit between the manufacturing community and the support needed to drive growth and investment.
4.????? Launch a Support UK Manufacturing and Buy British Campaign
Promoting UK manufacturing is essential for boosting the sector's visibility and competitiveness. A "Buy British" campaign could educate the public on the benefits of purchasing British made products, thereby fostering a sense of national pride and supporting local businesses. There are pockets of supporters around the UK, and a national campaign would help to bring everyone together behind a single cause.
Having a campaign to promote UK manufacturing would also support attracting a more diverse community of people into the industry. There are many skills gaps within the sector that are not being addressed at a fast enough pace. There is a belief that young people and women in particular don’t see manufacturing as a career option. Growing the sector will need a joined up approach between, industry, schools, universities, community groups and government.
Additionally, ensuring that larger manufacturers support SMEs with fair pricing and payment terms will help to create a more equitable and supportive business environment. If we are to see more reshoring and opportunities for SME manufacturing businesses in the supply chain, it need to be delivered fairly and sustainably. Year on year cost down expectations and excessively long payment terms put unfair pressure on SME manufacturers within the supply.
5.????? Invest Funding into Training, R&D and Enabling Technologies and Equipment
Investment in training, R&D and enabling technologies and equipment is crucial for maintaining the advanced manufacturing sector's competitive edge. From our interviews and intelligence on the greatest growth enablers, these were the three main pillars to target with subsidies.
Providing funded support for business training and development can help address skills gaps and ensure that the workforce is equipped to handle new and emerging skills, technologies and processes. We believe that businesses should be allowed to position any training towards government funding, provided they can evidence that it will support the growth and sustainability of the business.
We have a world class further education system in the UK that people travel from across the engage with. The advanced manufacturing sector would benefit from better collaboration between our universities and research centres, that focuses on business impacts and outputs. Shifting the focus of higher education towards practical business impacts, rather than purely academic achievements, will also enhance the relevance and applicability of educational programs for students.
To support bridging the skills gap, increasing investment in Knowledge Transfer Partnerships (KTPs) and showcasing their successes would further encourage collaboration between businesses, academia, and regional leaders to foster innovation and skills development. KTP’s are a practical way of leveraging the capabilities of university specialisms, advancing the UK manufacturing sector and providing hands-on experience for keen students.
With robotics and automation, and many other technologies and equipment that could improve productivity in the manufacturing sector, our adoption rate in the UK is much slower than the majority of other advancing countries. The main reasons for this are, being educated on the latest technologies and knowing what is available, having the skills in house to implement and manage new technologies and equipment, and having the funds to pay for the investments. Hence, our recommendation would be to more heavily subsidise training, R&D and investments in technology and equipment, where there is a clear sustainable productivity gain for the business.
Finally, where government investments are being made in training, R&D and technology and equipment, there needs to be more transparency on the return on investment this has enabled for the UK economy. Millions of pounds per year are spent in this area, and the data is lacking on the return this has provided. Also, the clear learnings businesses have gained from the experiences and what could be shared with other SME manufacturers to help them grow.
What Can We Do to Support You?
In conclusion, the future success of the UK manufacturing sector depends on a multifaceted strategy that includes support for manufacturers that are advancing the sector. By addressing these key areas outlined above, the UK can enhance the competitiveness, sustainability, and innovation capacity of its manufacturing sector, ensuring long-term economic growth and societal advancement.
We have done what we can for now to influence the UK government towards a better future for UK manufacturing. They have suggested a response and more detailed strategy will be released in April 2025.
In the interim, what can we do to support you? Have we captured anything above that resonates, that you would like to discuss further? Are there gaps in your own strategy that you would appreciate a sounding board to discuss with?
We are a reliable and trusted force for good that helps UK manufacturers to facilitate positive lasting change for the UK economy, the people employed in the sector, the planet and future generations.
We believe that to give purposeful and growth minded leaders the tools to lead and inspire others… is to give them the power to change the world for the better.
We are the Manufacturers’ Alliance.
We would like to express a special thank you to Kathryn Hipkins Hosokawa Micron Limited Steve Harrison REAGENS (UK) LIMITED Vicky Davies Rhino Products Ltd & John Hardwick for supporting the development of this government response, and to all the UK manufacturers that keep our economy going and the wheels of industry turning.