New administration, new hope for industry?
1 August 2024 
The recent change of government open up new prospects for the future of manufacturing in the UK. Nikesh Mistry, Gambica’s sector head for automation, suggests ways that the new administration could work with British industry for the benefit of all.
The recent change of government brings both challenges and opportunities for the UK manufacturing sector. As the Labour Party takes the reins, the industry wants to know what it will mean for manufacturers, integrators and developers.
Gambica recently published a manifesto asking the government for a long-term industrial strategy – something that the UK has lacked for a while. We are keen to explore how the new administration’s policies might shape industry, and the industrial automation sector – particularly in the context of VSDs, soft-starters, motors and digital transformation.
A top priority for the new government must be stability for the manufacturing industry. Labour’s policies will impact on a vital sector with 228,000 employees, which produces £18.7bn of goods every year.
In July 2021, the Ecodesign Directive introduced new energy efficiency levels for electric motors and VSDs. Manufacturers must now meet IE2 and IE3 efficiencies for motors. This is a step towards cutting emissions and helping to control our carbon footprint.
It is crucial that the Labour government pairs digitalisation with environmental goals. They go hand-in-hand. And digital technologies enhance resilience, efficiency and productivity.
Manufacturers who embrace digitalisation become more adaptable, even during crises, as demonstrated during the pandemic. While Covid was devasting, it broke down barriers to remote working, and transformed on-site production through virtual and augmented reality. This could only be achieved through continuous adoption and understanding of the need to use digital technologies not only from our sector but from others looking to build resilience.
Most UK manufacturers are SMEs, often located in regions targeted for economic “levelling up”. For the UK to build and maintain a competitive advantage, this levelling up needs to happen rapidly and the infrastructure needs to be vastly improved to help accelerate digital adoption which, in turn, can help meet this goal.
The best way for the new government to boost digital adoption and greener technologies is to invest in education and training programs to equip both the existing and future workforce with digital skills. Partnerships between educational institutions and industry are crucial, which is why Gambica is working with its University and Industry Collaboration Council to develop workstreams to help bridge the gap between academia and industry.
The new government’s policies will shape the future of UK manufacturing. We hope they will seize the opportunity for a resilient, efficient and innovative manufacturing landscape. During the election, Labour was adamant that it was aiming to create wealth by growing the economy rather than raising taxes or cutting public services. From the point of manufacturers, and the associations that represent them, this would be a fantastic promise to fulfil. By investing in the manufacturing sector, digitalisation and skills, we could help to grow our economy.
With all of the socio-economic and political pressures that the previous government faced, from wars to the pandemic – and the dreaded “B” word – it has certainly been a turbulent decade.
Make UK’s recent Manufacturing Outlook says that economic conditions are clearly improving. “This past year has been characterised by a more stable business environment, in relative terms, than manufacturers have been used to for some time”, it adds, “and with more price stabilisation, we’re hoping that costs could start to be driven down again”.
It is understandable that a key part of a “long term” strategy is that nothing will happen overnight and we will have to make small steps to build towards a larger ultimate goal.
With labour and skills shortages remaining a problem, the technologies mentioned above can start to create new skilled jobs for the future workforce. Alongside that, working with digital technologies is far more attractive than previous engineering jobs. We are slowly helping to remove the stigma attached to a STEM career by demonstrating that digital industries have high-paying, highly-skilled jobs which can build long-term careers. This is starting to attract a new workforce and reduce the unemployment margin. But again, small steps.
There will always be barriers to adoption, those unwilling to change to greener options, and a general mistrust of new technologies. However with the right policies, a strong support from associations and like-minded businesses, and constant upskilling and learning, we definitely have a better chance at achieving these goals.
