Leaders' Blog

A blog post by Henry Anson

Think back to 2017 

The last UK Industrial Strategy was written in 2017 during Theresa May’s premiership, overseen by Greg Clark, the then Secretary of State for Business, Energy and Industrial Strategy. It was an ambitious blueprint for the UK’s economic future, focusing on key areas like artificial intelligence, clean energy, future mobility, and an aging society. The strategy aimed to boost productivity, create high-paying jobs and support industries – especially manufacturing – in navigating global shifts like digital transformation and sustainability challenges.

I remember the reception within the manufacturing sector being mixed. While the strategy’s long-term vision was praised, manufacturers were often left wondering how it would translate into concrete benefits for their day-to-day operations. Many felt it lacked the immediate, sector-specific policies needed to address critical issues like supply chain vulnerabilities, the growing skills gap, and the pressures of Brexit.

Over the years, the feeling grew that the 2017 strategy fell short of its lofty promises, with inconsistent implementation and a disconnect between national goals and local industry needs.

This disconnect left UK manufacturers increasingly vocal about the need for a coherent, long-term strategy that could tackle both immediate challenges – such as rising costs, supply chain disruptions and inflation – and lay the groundwork for future innovation.

Now, seven years later, the new 2024 industrial strategy, Invest 2035, arrives amidst new challenges and expectations. But the key question remains: is this the strategy manufacturers have been waiting for? 

The need for a long-term vision

The UK manufacturing sector has faced years of uncertainty, from Brexit and fluctuating trade agreements to supply chain disruptions and the pressures of decarbonisation. One recurring frustration has been the absence of a clear, long-term government strategy that could guide businesses through these turbulent times. In the past, industrial strategies have come and gone, often seen as temporary fixes rather than durable solutions.

With the release of the Invest 2035, manufacturers were hoping for a framework that would not only address long-standing concerns but also provide a path for future growth. Has the new strategy delivered?

What the industry asked for

Before the 2024 strategy, manufacturers had a laundry list of needs and concerns:

• Decarbonisation and Net-Zero Goals: While many manufacturers are keen to embrace greener practices, they’ve been vocal about needing government support to make the shift affordable and achievable.
• Supply Chain Resilience: Global events, particularly the COVID-19 pandemic, revealed deep vulnerabilities in supply chains. Manufacturers needed support to bolster their supply chains and ensure stability.
• Skills Shortages: Manufacturers have long struggled to recruit workers with the right skills—especially in areas like digitalisation and automation.
• Research and Development (R&D): Industry leaders have repeatedly emphasised the importance of R&D investments to keep up with global competitors and drive innovation.

What the new strategy offers:

Invest 2035 addresses many of these concerns – on paper, at least. It emphasises sustainability, promising substantial government support to help manufacturers transition to greener practices and meet net-zero targets. This is in line with broader UK goals to decarbonise by 2050, but the strategy sets clearer benchmarks for businesses to follow in the immediate term.

The strategy also commits to supply chain resilience, with new initiatives designed to help manufacturers diversify their suppliers, invest in new technologies like digital twins, and build more robust logistical networks to weather future disruptions.

Additionally, there is a renewed focus on skills development, particularly in areas like clean energy, data science, and advanced manufacturing.

Are manufacturers smiling?

Has the new strategy won over UK manufacturers? I’ve spoken to dozens of my contacts and the reaction has been mixed. On the one hand, industry bodies like Make UK have welcomed the renewed focus on green growth and resilience, praising the government’s commitment to decarbonisation and acknowledging the strategy’s alignment with global trends.

However, many manufacturers are adopting a ”wait-and-see“ approach. Past industrial strategies have often promised big changes but delivered less than expected in practice. Some business leaders are concerned that the strategy lacks specifics when it comes to implementation. For example, while the government has committed to supporting net-zero efforts, manufacturers want to know how funding will be distributed and whether smaller businesses will receive the support they need to compete in this new green economy.

There’s also concern that the strategy doesn’t address the immediate pressures facing many manufacturers such as high energy costs and rising inflation. While long-term sustainability is critical, many companies are struggling to stay afloat in the short term, and there’s little in the new strategy to relieve these more urgent concerns.

What can manufacturers do to maximise benefits?

To make the most of the new strategy, manufacturers should focus on a few key areas:

• Embrace Green Technologies: The government is placing significant emphasis on net-zero initiatives. Manufacturers who invest early in green technologies and sustainable practices can not only benefit from potential government funding but also gain a competitive edge as sustainability becomes a priority for customers and investors alike.
• Strengthen Supply Chains: The strategy’s focus on supply chain resilience offers a chance for manufacturers to modernise their supply networks. By investing in technology like AI and digital twins, manufacturers can build more flexible and adaptive supply chains that are better equipped to handle future shocks.
• Invest in Skills and R&D: The push for a highly skilled workforce, particularly in digital and green technologies, will only intensify. Manufacturers that invest in training their workforce and increasing R&D capabilities will be better positioned to capitalize on new opportunities, especially in sectors like clean energy and automation.
• Engage with Sector Deals: The government’s sector-specific initiatives, such as deals targeting green energy, can offer significant opportunities for growth. Manufacturers should actively seek out collaborations with the government and industry partners to participate in these deals and shape future policy.

Will Invest 2035 make a difference?

It’s too early to say whether the revised industrial strategy will make a significant difference in the day-to-day operations of UK manufacturers. On paper, it addresses many of the industry’s long-standing concerns – particularly around sustainability, supply chain resilience, and skills development. However, the true impact will depend on how effectively the strategy is implemented and whether the promised support translates into real, tangible benefits for businesses on the ground.

For now, manufacturers are cautiously optimistic. The strategy represents a step in the right direction, but its success will depend on continued engagement between the government and the industry – and, critically, on the delivery of the promised initiatives.

Invest 2035 may not have completely silenced the long-standing frustrations of UK manufacturers, but it has the potential to address key concerns if implemented effectively. The industry will be watching closely to see if the promises made translate into real support and measurable impact. For manufacturers, the strategy represents both an opportunity and a challenge, one that requires proactive adaptation and engagement to maximise the potential benefits. 

Henry Anson

Managing Director, Hennik Research