In 2022, the UK manufacturing sector delivered £224bn worth of output. We are now the 8th largest manufacturing in the world, overtaking France from 9th place last year.
However, despite the sharp bounce back in economic activity between 2021 and early 2022, and a successful first six months of 2023, the results of our Q3 research demonstrate that continued growth cannot be sustained for much longer.
Rising interest rates continue to impact manufacturers, who have noted reduced appetite for higher risk projects, though businesses themselves remain upbeat with confidence levels continuing to rise and investment intentions even increasing.
Our Autumn Statement submission aims to tackle challenges facing manufacturers. We recommend that the Government implement the below initiatives with a bold, ambitious, and modern industrial strategy that puts manufacturing at the heart of it. The Government’s Autumn Statement should include initiatives that:
- Tackle current labour shortages and build a workforce fit for the future
- Accelerate electricity market reform and drive energy efficiency
- Boost productivity through increased digitalization
- Increase the UK’s competitiveness and grow UK manufacturing businesses
- Support British manufacturers to export their goods and services across the globe
- Manufacture homes for the future
In order to continuously climb world rankings and ensure the future success of Britain’s manufacturing sector, the Government must support businesses to upskill their workers, level up their infrastructure, and extend their reach into international markets. This can only be achieved by taking important, immediate measures now, alongside looking beyond political cycles, to reduce barriers to businesses in the future.
You can download and read our full Autumn Statement submission below.