Favourable response to Labour win but industry leaders demand action

Industry leaders and key associations have been quick to welcome the change of government, while emphasising the need for early signs of delivery and flagging up key issues as priorities.

Chief executive of Make UK Stephen Phipson applauded a ‘bold statement of intent’ ensuring that key institutions are focused on promoting economic growth.

“The current anaemic rate is simply not sustainable if we want the investment in our public services and vital investment in critical infrastructure and, the advantage the UK now clearly has as a stable place to do business and, attract investment, is one we must not waste,” warned Phipson. 

“An industrial strategy will be central to boosting growth, especially working in partnership with Government at national and regional level and, tackling the skills crisis must be at the heart of boosting growth in the first instance, with a fundamental and widespread review of the Apprentice Levy and Technical Education system as a starting point.

He acknowledged that ‘turning the growth taps on’ was difficult in the uncertain international climate and a difficult inheritance but added that industry will commend the announcement.  

Aaron Merkin, chief technology officer, Fluke Reliability said although the Labour party’s outline for advanced manufacturing plans was less clear cut than the Conservatives’ Spring Budget pledge in the, they had emphasised how strategic partnerships with the industry will be key for the goals of the Industrial Strategy Council. 

“Their mission outlines the plan to create a pro-business environment that supports innovation, investment and high-quality jobs. For some manufacturers this is a breath of fresh air.

“Our most recent research into the manufacturing industry has unveiled that the industry demands further investment into digital technologies (with 44% of budgets being put towards artificial intelligence), while financial resources are also needed to be found for other areas of the business, such as ongoing training to maintain a skilled workforce and keeping up with rising energy costs as a result of geopolitical tensions across Europe.”

He added he hoped to see benefits from the development of the National Wealth Fund that aims to attract £3 of private money for every pound of public investment.

“If they fulfil this mission and back it with public and private investment, the new government could bring the UK manufacturing industry back to the success of its heritage while paving a greener and more cost-effective way for its future in the next stage of the industrial revolution.” 

The Institution of Mechanical Engineers called, along with the National Engineering Policy Centre, for a national engineering and technology workforce strategy, saying in its statement:

“With engineering and technology predicted to grow faster than any other sector between now and 2030, it is imperative the new government works with industry to address barriers standing in the way of young people joining the workforce 

“The skills shortage in engineering and technology is already limiting growth. A strategic approach to addressing the problem will support current projects and power large scale developments such as Great British Energy, said the IET in its statement. 

Citing ‘severe and growing’ STEM teacher shortages – with over 1,600 vacancies compared to around 1,300 a year ago - EngineeringUK chief executive Hilary Leevers urged investment in professional development.   

“As the new government has rightly recognised, we need to nurture a greater pool of talent in engineering and technology including more apprenticeship opportunities for young people, to meet current demand and to help our economy to thrive and to achieve our net zero goal.  

“In order to address skills shortages in the future, the workforce strategy needs to link to a comprehensive education and skills plan underpinned by enhanced careers advice in schools and an urgent solution to current STEM teacher shortages.? We will be doing what we can to support the new government in taking action to turbo charge the sector.” 

Chief executive of the National Centre for Universities and Business Dr Joe Marshall, said his organisation was heartened to see how central research and innovation was in Labour’s manifesto and hoped for delivery on promises of 10 year budgets and stability.

He added: “Innovation should be at the forefront of the Government's economic plan to recover and should form the base of their new industrial strategy. We need strong and decisive action if we are to be a true competitor in the global research and development market, as well as developing the workforce skills needed for future success.”

NEWS: UK manufacturing industry looks to have turned a corner, said Frederik Esterhuizen, global business line manager, metals at ABB Process Industries. 

“The UK manufacturing industry looks to have turned a corner. After a turbulent start to the 2020s, manufacturers can now begin to sow seeds of growth as a more fertile business environment awaits them,” commented Esterhuizen.

“Increasing production is the clear way to do this; however, doing so in a way that is smart, placing efficiency and sustainability at the core, is how manufacturers can build and sustain long-term growth. We need to support the industry’s journey to cleaner, more efficient metal production by embracing advanced automation, electrification and digital technologies and providing the right tools and consultancy.”

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