New industrial strategy and falling inflation: Read our UK manufacturing newsletter

Welcome to our fortnightly UK manufacturing newsletter, rounding up the stories you need to know. There is cause for positivity, as the UK attracts investment, the government launches its new industrial strategy, and there is a surprise fall in inflation (though this did not extend to food and drink). However, the upcoming Budget introduces uncertainty, with an increase in fuel duty likely to raise costs for manufacturers.?

Read on for your summary...?

New industrial strategy launched at Investment Summit: The government has launched an industrial strategy green paper to kick start its plans for British industry. ‘Invest 2035: The UK’s modern industrial strategy’ is a 10-year plan and focuses on eight growth driving sectors, one of which is advanced manufacturing. It identifies that Net Zero and digital transformations present opportunities but asserts that the government will need to provide support to ensure that the UK attracts investment. At this stage, the green paper is appealing for responses, with the final strategy to be published Spring 2025 – but Make UK has already backed it, claiming it could spark massive growth and reshoring.??

This strategy was announced at the International Investment Summit, which secured ￡6.3 billion in investment – including over ￡200 million for a new freight ferry terminal at the Port of Immingham, to boost European trade. ?

Food manufacturers face rising inflation: Though inflation in September has fallen as a whole, the picture is less positive for food manufacturers as inflation for food and non-alcoholic beverages rose for the first time since March 2023. Wholesale food prices have stopped declining, largely due to climate related factors – which might make sourcing ingredients more expensive for UK manufacturers. ?

For businesses looking to invest in green technologies, the last week brought good news. The Climate Change Agreements (CCA) scheme has been extended by six years – offering businesses in carbon intensive sectors, including food and drink and motor manufacturing, reduced rates if they meet energy efficiency and decarbonisation targets.?

Inspiration station: Desk-free manufacturing employees are at risk of feeling unengaged, yet modern performance management can bring them back to the fold. Read our new free guide ‘10 ways to modernise performance management’, for helpful tips to make sure your learning and development processes are fit for the future.?

Part of an up-to-date approach to empowering your employees means setting SMART goals. Read more in our latest blog about the creation of SMART goals for manufacturing employees in particular.?

See you in two weeks, when we’ll be rounding up the key takeaways from the Budget.