Executive Survey 2025: Industrial Strategy & the Road Ahead

Shane Geary, EVP of Manufacturing & Operations at Pragmatic Semiconductors, called the Industrial Strategy a “positive development” for UK manufacturing, highlighting its recognition of Advanced Manufacturing, supply chain resilience, R&D, and regional skills development. He also stressed the importance of attracting overseas talent to address shortages. 

“The regionalised focus of investment in skills is extremely positive,” he said. “A balanced talent strategy is essential for advanced manufacturing. While the UK builds its domestic workforce, international talent remains critical - and mechanisms like an advanced manufacturing visa can help bridge the gap.” 

Chase Clark, Manufacturing Director at cosmetics retailer LUSH was also pleased to see the Strategy, though is keen to see it fully come into effect. 

“It’s been a long time coming,” he told us. “Acknowledgment and recognition of the challenges manufacturers face is a start, meaningful pledges is a positive step in the right direction, though implementation and execution at a business level is still to be seen.”

Though indeed it is welcomed by many, effective delivery and communication of the Strategy’s promise is the next key step, something which some manufacturers haven’t seen so far.

SMR Automotive Managing Director Craig O’Connell believes its launch has been “disjointed” perhaps due to a “lack of communication in approach.” While Harwin President Damon De Laszlo CBE feels that, though changes to capital allowances are “helpful”, it’s unclear what the Government is doing to do to support industry.

Increasing employment costs - from higher National Insurance contributions, minimum wage rises, and those associated with the forthcoming Employment Rights Bill - have been a major concern for manufacturers, and it’s a mixed picture on whether the Industrial Strategy will help them manage these costs. 

Pragmatic’s Shane Geary believes the Strategy could play a “crucial role” in easing these pressures through funding for automation, AI and advanced manufacturing, boosting productivity, collaboration and R&D. He also sees regional support as a way to balance costs while tapping into skilled workforces outside high-cost urban centres.

LUSH’s Chase Clark doesn’t expect the Strategy to make much difference on the employment cost front, largely due to the bulk of the Poole-based business’ existing staffing costs sitting within their commitment to the Living Wage at production levels. He instead views the Employment Rights Bill’s wider impact as more pertinent to the business.

SMR Automotive’s Craig O’Connell expects the increased employment costs to continue to make the firm’s ability to compete as both a national and international manufacturer more difficult. Harwin’s Damon De Laszlo also shares similar concerns around the increasing cost of employing people, particularly apprentices.

Energy is another major cost for manufacturers, with 51% in the Executive Survey 2025 citing it as their biggest risk for the year ahead, and many see promise in some of the plans to address these concerns in the Industrial Strategy.

Including Pragmatic’s Shane Geary, who sees “real potential” in the Strategy’s proposals on grid investment, renewables and efficiency, but stressed that energy security, cost stability and decarbonisation incentives - including targeted support (such as such as capital grants or clean energy-linked pricing) for scale-up facilities - will be key for advanced manufacturing.

Chase Clark welcomed the Strategy’s focus on lowering energy costs for energy-intensive businesses but was unsure if LUSH would benefit from levy reductions. His bigger concern is clean energy and grid capacity. “We face long lead times, rising costs, and delays in legal processes, making it hard to forecast or implement a net zero future.” 

As a solution, he said LUSH would “welcome a local smart energy system, especially if it helps us collaborate with other nearby manufacturers.” Chase also warned that water costs have risen over 20%, adding: “Water quality and security are just as critical [as energy] for us.”

Craig O’Connell doesn’t expect the Strategy to help alleviate energy costs for SMR Automotive, nor does Damon De Laszlo CBE believe it to be a possibility for Harwin.

A core element of the Industrial Strategy is its 10-year shelf life, giving businesses the confidence to plan for the next decade, something which is already being felt by Pragmatic Semiconductor. 

“The Industrial Strategy reinforces our commitment to the UK as a globally competitive base for semiconductor manufacturing,” said Shane Geary. “Operating in a supportive market will significantly facilitate our expansion and recruitment plans.” 

He added that to sustain long-term growth, manufacturers need “a level playing field – with incentives like tax credits or loan guarantees to support facility investment.” While policy certainty and delivery will be “key.”

An important investment priority for LUSH is energy, but meaningful change on grid capacity and connections is needed before net zero plans can proceed. Other concerns include MEES [Minimum Energy Efficiency Standards] and EPCs [Energy Performance Certificates], plus clarity on tenant-landlord responsibilities and enforcement if properties fall short of minimum standards.

SMR Automotives are exercising caution when it comes to their investment plans, waiting for further clarity and assurances before making any major commitments. Harwin are in a similar boat, preferring to base their investment policy on business prospects. 

“We try and avoid Government influence,” said Damon De Laszlo CBE. “Capital allowances are a help but the tightening of the criteria of R&D tax credits may prove to be negative depending on how [HMRC] interprets them.”

The Executive Survey 2025 found that 36% of manufacturers saw cost control and launching new products as key opportunities for 2025. On whether the Strategy has shifted perceptions more broadly, Craig O’Connell and Damon De Laszlo CBE felt it hadn’t.

While Chase Clark said “not directly,” though he welcomed the Government’s commitment to strengthening UK-EU economic ties and the upcoming expansion of UK Export Finance’s portfolio. “Continued supply chain disruptions, trade and tariffs remain a concern and one we’re trying to navigate,” he added.

Shane Geary is however encouraged by the way the Strategy aligns with Pragmatic’s own ambitions, thanks in part to its emphasis on advanced manufacturing. 

“Our business is centred on innovation, rapid product development, and cost-effective, sustainable manufacturing, so it’s encouraging to see the Strategy prioritising these same areas,” he said.

He added that the emphasis on R&D, commercialisation, and productivity supports the company’s ability to scale competitively, while new opportunities for collaboration across the UK’s innovation ecosystem could unlock potential in areas like smart packaging, sustainability tracking, and connected IoT devices.

Perhaps the million-dollar question at the heart of all this – and probably far too soon to know the answer, though it hasn’t stopped us asking it.

“Yes, absolutely,” predicts LUSH’s Chase Clark, who believes a successful 10-year Industrial Strategy should support growth that “matches the ambitions, proficiency and agility of UK manufacturing.” 

Pragmatic’s Shane Geary is equally optimistic, noting the critical role of semiconductors in digital transformation. 

“We anticipate advanced manufacturing to contribute with tremendous growth in the UK as technology innovation continues apace,” he said, adding that the Strategy’s focus on domestic capability, innovation, productivity, and skills will help UK manufacturers compete globally on quality, IP, and sustainability - not just cost.

SMR Automotives’ Craig O’Connell doesn’t expect high levels of growth domestically, expecting it to be “stagnant to slight.” While Damon De Laszlo CBE sees areas of potential for Harwin though doesn’t wish to look too far ahead when making predictions. 

“Our customer base is aviation, satellites, UAVs and high medical equipment. All of these areas are growing rapidly for my company,” he said. “By 2035 however, the sector’s growth in general is basically unpredictable as there will probably be three elections between now and then.”