Sir Keir Starmer’s Government has backed UK industries it thinks have the potential to grow, with the aim of creating jobs and prosperity across Britain and Northern Ireland, in the new The Industrial Strategy, published on Monday.
Artificial intelligence (AI), offshore wind power, and electric vehicle batteries are among the sectors which feature in the strategy which aims to help realise Labour’s pledge to create sustained economic growth, which ministers want to see become the highest in the G7.
Jennifer Hughes, general manager of Telford based industrial automation specialist Transicon and an advisory board member of Women in Manufacturing UK (WiM UK), has given her thoughts on the potential benefits the new strategy will bring.
She said: “The government’s Industrial Strategy hits the mark with its focus on skills and R&D investment.
“A £100 million engineering skills package is crucial for addressing the persistent skills gap our sector faces.
“With fewer young people taking technology and design subjects – a 70 per cent decline at GCSE level over the past decade – this targeted intervention couldn’t come at a more critical time.
“The R&D (research and development) funding for advanced manufacturing will directly benefit the factories we support. Our customers are constantly looking for ways to remain competitive globally, and investment in automation and robotics – areas where Transicon specialises – will help them do just that.
“I’m also encouraged by the expansion of the Made Smarter programme.
“Many manufacturers we work with understand they need to adopt new technologies but struggle with implementation. This practical support could make a significant difference.
“For British manufacturing to thrive, we need both skilled people and cutting-edge innovation. This strategy seems to recognise that, and if delivered well, could help secure the future of UK manufacturing for years to come.”
Plans in the Industrial Strategy to drastically cut electricity costs by 2027 may be too late for some under-pressure manufacturers battling to remain competitive, however, according to energy specialist Joe Collison, managing director of CES which works with manufacturers to develop renewable systems.
The new British Industrial Competitiveness Scheme was announced on Monday and promises to reduce electricity costs by £35-40/MWh.
Joe, however, said: “The full effect of this announcement won’t be felt until 2027 – this may be too late for many manufacturers.
“For energy-intensive businesses, there’s somewhat earlier relief coming through the enhanced Network Charging Compensation scheme, which will increase from 60 per cent to 90 per cent starting in 2026.
“But this means most manufacturers will need to navigate high energy costs for at least another 12 to 18 months before seeing substantial relief.
“While the £1 billion Clean Energy Supply Chain Fund should help build domestic capacity in renewables relatively quickly, the direct impact on electricity bills will take longer to materialise.”
CES designs and installs renewable solutions which can power energy-hungry operations during peak times, provide backup during outages and help schedule production to match optimal energy generation periods.
Joe added: “At CES, we’ve seen first-hand how supply chain constraints have hindered deployment and increased costs across renewable projects.
“This targeted investment should help build domestic manufacturing capability, reduce our reliance on imports, and ultimately bring down the cost of the clean energy transition.” Joe added that the strategy also addressed grid connection delays through the new Connections Accelerator Service.
“This has been a major bottleneck for many of our clients, with some projects facing decade-long waits for grid capacity,” he added.