The Make UK Campaign for a strong manufacturing Industrial Strategy

The UK’s position as a powerhouse in manufacturing and the recent ripple effects surrounding it make for an increasingly complicated business environment, leading industry body Make UK to call for a ‘UK government industrial strategy 2023.’ This strategy bolsters business confidence in one of the nation’s most important sectors.

The UK’s longstanding position as a manufacturing superpower is a major economic force globally. Much of the industry’s reputation is thanks to the breadth and depth of its sub-sectors, including pharmaceuticals, machinery and electronics, alongside the well-established automotive and aerospace industries.

Yet manufacturing in the UK is facing headwinds on several fronts. The industry continues to face challenges from the fallout of Brexit and the pandemic, alongside the net zero transition, rapid technological change and geopolitical competition.

Read more about some key concerns of UK manufacturing employers, the rationale behind Make UK’s industrial strategy for manufacturing and what these issues mean for workforce planning.

The State of Manufacturing in the UK

The UK’s manufacturing sector continues to play a crucial role in driving economic growth and competition on the global stage. Current government figures show manufacturing accounted for 9.5% of total UK economic output (gross value added) and 8% of national employment.

But there are distinct signs the sector is facing challenges. The total value of manufacturing product sales declined by more than £2 billion between 2019 and 2021. Most significantly, manufacturing PMI data shows contraction is continuing to bite, pointing to lowered demand which is slowing output.

While these points of reference may not immediately impact overall GDP, the economic risks are currently heightened, underscoring the case for more support of manufacturing to promote economic growth.

Why a Robust Industrial Strategy is Essential

Make UK’s industrial strategy for manufacturing report has launched when advanced economies are increasingly seeing the value of a coherent body of policies that aid its manufacturing industries. The governments of China, Germany, the United States, France and the Netherlands have already embraced industrial policies to mitigate economic uncertainty, global supply chain instability and smooth the transition to net zero.

In the UK, however, manufacturing organisations are voicing concerns that a government industrial strategy for 2023 is missing from the equation. In fact, the UK is the only developed nation without an industrial strategy, as Make UK notes in its report.

Accordingly, the majority of manufacturing organisations see the lack of industrial strategy as a damper on growth, Make UK’s report shows. About 85% of companies say an industrial strategy would give their business a long-term vision, while 75% say it would provide a stable business environment.

For an industrial strategy to be viable, it must incorporate sustainable practices and encourage businesses to adopt environmentally friendly practices and technologies. Focusing on sustainability ensures that economic growth is achieved without compromising the environment for future generations.

In addition to helping UK industries transition to net zero, another reason why a robust industrial strategy is essential is that it will allow greater direct investment and R&D incentives, Make UK notes.

With the UK manufacturing sector increasingly embracing advanced technologies, such as automation, robotics, and Industry 4.0 concepts, more investment and R&D support can enable employers to improve their productivity and competitiveness.

An Industrial Strategy Also Needs a Talent Strategy

No industrial policy at the national level is workable without a commitment to developing the workforce. The broader concerns of manufacturing organisations are fundamentally intertwined with their ability to recruit, train and retain talent.

A strong industrial strategy necessitates people-focused programmes at both industry and employer levels, especially as skills in leadership, digital technologies and sustainability practices are becoming increasingly important.

It’s clear that most employers in the sector recognise this reality. About 70% of manufacturing organisations say skills acquisition should be a core consideration in a national industrial strategy, according to Make UK’s survey, but they are facing a combination of job applicants without the required skills and inadequate interest in advertised positions.

Two factors have the most bearing on workforce planning issues: the quality and flexibility of the UK’s apprenticeship system, and employers’ efforts to entice young workers into manufacturing careers. While a reformation of apprenticeships requires government action, employers could invest more work into talent attraction.

As WorldSkills UK research shows, 41% of employers are not taking any actions to inspire young people to consider a career in manufacturing. Finding ways to appeal to younger workers is an important piece of the talent puzzle for manufacturing employers.

Summary

To ensure UK manufacturing’s longevity and growth, policies that encourage more investment and innovation and improve business infrastructure, will be essential. An effective industrial strategy will require an energetic commitment to developing skills and attracting talent to the industry.

Identifying critical positions for the short and long term, running skills development programmes, and finding new ways to attract young talent into manufacturing will be integral to strategies at a national and company level.

Make UK’s industrial strategy for manufacturing is a broad overview of the industry’s challenges, aspirations and potential. For recruitment-specific insights into the manufacturing industry, CV Consulting can help.

Please contact us today for help with your staffing needs within the manufacturing sector.Our experienced team understands your unique challenges and how to find suitable talent beyond conventional approaches.