On the eve of the launch of the new Industrial Strategy, manufacturing voices were heard loud and clear at the Make UK Manufacturing Dinner and Conference on June 18 and 19, at Sedgefield, County Durham.
We were at Hardwick Hall Hotel last week as Drinks Reception Sponsor and Exhibitor – and had the chance to hear insights on manufacturing challenges, and see presenters from across the North share their experiences.
Lord Richard Harrington, Chair of Make UK, introduced Wednesday night’s dinner in fine style, suggesting that in the UK, manufacturing is sometimes forgotten – and that it was Make UK’s job to make sure that didn’t happen.
Stephen Phipson CBE, Chief Executive of Make UK, set the scene for a lively panel session at the dinner, with a strong message around the importance of innovation and resilience in UK manufacturing – and the impact of high energy costs on manufacturers (more on that later).
Plus, the defence opportunity, scaling up battery manufacturing, the strength of North East England in the EV sector and more were all discussed in a lively panel session.
Among the many conference highlights were presentations from:
- Stephen Phipson, who spoke of the impact manufacturing can make on society – using the example of the ongoing transformation of Teesside through the emergence of renewables-focused projects – and highlighted the importance of localisation in the face of global uncertainty.
- Mike Maddock, Managing Director of Performance Engineered Solutions, whose presentation on the use of AI as a tool in manufacturing was essential listening, especially for businesses still grappling with its applications and implications.
- Sharon Lane, Managing Director of Tees Components and Leanne Hume, HR Manager of Ford Aerospace Ltd who both spoke passionately about the work their companies are doing in training, nurturing apprentices and developing talent, and how they are engaging with local schools.
- Harriet Bean of BASF – Make UK’s National Engineering Apprentice Winner – who explored her own journey as an apprentice, from CV writing as a 16-year-old to working in industry.
- Kiran Fothergill, Director of Pickering Lifts, who spoke about how his company is rooted in the mining industry and Victorian entrepreneurship – and how it is continuing to evolve to meet new challenges.
Just a few days later, we were digesting the new launched Industrial Strategy, the first since 2017.
And it appeared that the Government had listened to both Make UK and Make UK Defence in shaping the strategy.
So what were the key highlights for us?
Energy costs
Through our partnerships with organisations such as Make UK, Make UK Defence, NOF, the North East Automotive Alliance and Engineering and Manufacturing Network, and our work with clients, we know the impact that high energy costs are having.
The British Industrial Competitiveness Scheme, which will cut costs by up to £40 per megawatt-hour from 2027 for more than 7000 manufacturing firms – plus the increase of the 60% discount on network charges to 90%, for 500 of the most energy-intensive firms – is therefore very welcome. It could help release pent up investment in manufacturing facilities and jobs, and ripple across supply chains. A two year-consultation process will determine exemptions and eligibility under The British Industrial Competitiveness Scheme.
Stephen Phipson CBE certainly saw this a major win in his initial response to the announcement, stating: “The Government has listened to Make UK’s concerns that industrial energy prices need to be dramatically reduced in line with international competitors.”
He added: “With over a quarter of manufacturers saying that electricity costs alone make up 11-25% of their total business costs it’s clear that manufacturers need to be in scope.
“We will be pushing hard on ensuring that all of the manufacturing sector receives this support and Government moves at pace on the consultation and importantly the implementation.”
Skills
An extra £1.2 billion will be dedicated to skills each year by 2028-29. Given the growth-limiting skills shortages faces by sectors such as renewables and advanced manufacturing – industries which are key to the UK’s growth and competitiveness – this additional funding is essential.
Defence
There was a ‘big win’ for SMEs working on the defence industry, with a commitment to boost MOD spending with SMEs directly and across the supply chain by £2.5 billion: our friends in Make UK Defence have worked hard to influence policy on this and this approach will hopefully benefit many of the engineering innovators who wish to be part of the defence supply chain.
R&D
From the perspective of a business that works with many trailblazing SMEs and university spin-outs, the commitment to boost R&D by spending £22.6 billion per year by 2029-30 is very exciting. We’re looking forward to seeing what this means in practice – and how it will accelerate projects in the sectors we support. Certainly, there are huge opportunities for major tech innovation in green energy and advanced manufacturing.
Funding
We welcome the announcement that £7 billion in additional funding will be provided for the British Business Bank to improve access to finance. Again, access to finance has been a major barrier to growth for many of the manufacturers we speak to.
Advanced manufacturing clusters
The Government has said that it will make six direct investments, including £160 million funding for each of the advanced manufacturing-focused Investment Zones across the UK over 10 years. And has stated that it will explore the opportunity for a pilot initiative in partnership with the North East and West Midlands, with the aim of creating a “blueprint for unlocking clusters of excellence in other key growth areas across the UK”. This could be very good news for the development of the EV and space sectors in our home region.
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