Advanced manufacturing is key sector in UK’s new industrial strategy
14 October 2024 
The UK government has identified advanced manufacturing as one of eight key sectors that its industrial strategy – the first new one for seven years – will focus on in an attempt to deliver long-term growth for the nation.
As part of the government’s International Investment Summit, the business and trade secretary Jonathan Reynolds and the chancellor Rachel Reeves have published a green paper designed to kickstart the new industrial strategy, which aims to drive long-term growth that is sustainable, resilient and distributed across the country.
Reynolds told the delegates that the strategy will put Britain back on the global stage and help to attract investment into the most productive parts of the UK economy. “Our modern industrial strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond,” he said. “This is the next step in our pro-worker, pro-business plan which will see investors and workers alike get the security and stability they need to succeed.”
Reynolds and Reeves also announced that Clare Barclay, CEO of Microsoft UK, will chair the government’s new Industrial Strategy Advisory Council, which will help to guide the development of the new industrial strategy, working with business, trade unions, devolved governments, local leaders, academia and other stakeholders.
The Government plans to put the Council on a statutory footing, giving it powers and responsibilities and ensuring it will be permanent and independent. Initially, it is establishing an interim advisory Council, which is expected to meet for the first time in the coming weeks.
In addition to advanced manufacturing, the other sectors that have been earmarked for support include clean energy and “digital and technologies”.
The government points out that the top 30% of sectors ranked by productivity in 1997 have been responsible for around 60% of the economy’s entire productivity growth over the past 25 years. That’s why the industrial strategy will direct support to those sectors and geographical clusters thought to have the highest growth potential.
The government is also establishing a supply chains taskforce to assess where supply chains critical to the UK’s economic security and resilience could be vulnerable to disruption. The taskforce will ensure that the government works with business to address these risks, building the conditions needed to deliver secure growth.
Make UK CEO, Stephen Phipson, has welcomed the new industrial strategy, saying: “We live in a world which is massively different to a decade ago and simply leaving the economy and, industrial strategy, to the free market is an ideology which is long past its sell-by date. This is a welcome first step in addressing the Achilles heel of the economy which has left the UK an outlier among advanced countries. It sets out a clarity of vision for how the resources of Government and, in particular, each department can be convened towards a single objective of long term growth across all regions.
With the Advisory Council being put on a statutory footing, he adds, “industry will no longer fear the constant chop and change in policy we have seen over the last decade or so and can focus on the long term – it is important that the Government is delivering on its promises.”
Airbus UK chairman John Harrison sees the inclusion of advanced manufacturing in the industrial strategy “as a vital opportunity to build on the successful partnership between government and the aerospace sector. As one of the most technologically advanced businesses in the UK, we also welcome the strong focus on innovation, which is crucial to driving future growth and maintaining the UK’s global competitiveness in aerospace and defence.”
UK businesses have until 24 November to respond to the 66-page industrial strategy green paper.
