UK manufacturing needs industrial strategy to thrive

The findings come from the annual Make UK/PwC Senior Executive survey which quizzes senior manufacturing executives on the opportunities, risks and challenges for their business in the year ahead, as well as the outlook for the UK and international economies.

As well as the benefits from an industrial strategy, the survey shows that, despite the current challenges from escalating costs and a potential trade war, a majority of manufacturers believe that overall, the UK remains a competitive place in which to manufacture and the opportunities for their business in 2025 far outweigh the current risks. However, despite this view, as many think the UK economy will deteriorate as grow in 2025.

In response, manufacturers are backing their belief in the UK as a place to manufacture with a significant emphasis on developing new products, entering new markets and upskilling and retraining staff.

The survey also gives credence to the view of some economists that companies will counter the impact of increased costs by investing in new technologies and automation to improve their efficiency. Following the recent consultation, Make UK is now urging Government to set out in detail as soon as possible the full proposals of a formal long term industrial strategy.

Stephen Phipson, Chief Executive of Make UK, said: “Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive. But, they can only do this if they are operating in the most favourable business environment and there is little doubt that the next 12 months are set to be immensely challenging in a complex international environment.

“To help companies navigate a way through these challenges it is now vital that the Government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy given the very clear benefits manufacturers believe this will bring.

“By doing this, it will help re-boot business confidence and ensure the year gets off on a positive footing in terms of the relationship between industry and Government.”