Welcoming a new era for UK manufacturing

THE MANUFACTURING Technologies Association (MTA) welcomes the new UK government, led by prime minister Sir Keir Starmer, with optimism and enthusiasm. For over a century, the MTA has advocated for a robust and comprehensive industrial strategy, and we are thrilled to see that the new administration has recognised and committed to implementing this vision. The Labour Party’s manifesto outlines a strategic partnership that is mission-driven, future-focused, and aligned with the needs of the manufacturing sector.

A clear strategy for growth

At the heart of this new industrial strategy is the establishment of an Industrial Strategy Council tasked with creating a long-term economic framework that ensures collaboration between businesses, trade unions, and regional stakeholders. This approach marks a significant shift towards stability, enabling manufacturers to plan for the future with confidence.

The commitment of £7.3bn through the National Wealth Fund to boost industries like automotive and steel, upgrade ports, and support the development of gigafactories and green hydrogen is a transformative step. The focus on sustainability and advanced technologies positions the UK as a global leader in both innovation and green manufacturing.

A shared vision of public-private collaboration

Labour’s strategy also emphasises the importance of public-private partnerships, pledging to attract £3 of private investment for every £1 of public funds. This model, long supported by MTA, will not only spur innovation but also create jobs, driving growth across the UK. With a business-friendly regulatory environment, manufacturers can expect further encouragement to invest in cutting-edge technologies and sustainable practices.

The sector’s contribution to the UK economy is undeniable. The MTA’s True Impact of British Manufacturing report underscores that manufacturing is responsible for £224bn in GVA, supports 2.6 million jobs, and contributes 43% of the nation’s R&D investment. As nearly half of all UK exports come from manufacturing, the sector is a cornerstone of economic growth and global trade.

Re-industrialising for a sustainable future

The recognition of manufacturing’s pivotal role in the UK’s economic future is a call to action. The UK is on the brink of a new era, one that embraces re-industrialisation driven by advanced technologies and a commitment to sustainability. As the Labour government forges ahead with its plans, the MTA will continue to work closely with industry and government to ensure that these ambitious goals are met.

This new direction could not come at a more critical time. Political stability, combined with strategic investments in infrastructure and innovation, will allow the sector to regain its competitive edge. The MTA believes that the manufacturing sector is ready to meet the challenge, embracing new technologies that will boost productivity, improve sustainability, and ensure that the UK remains a global manufacturing leader.

Skills and innovation at the heart of the strategy

One of the key elements of Labour’s plans is the formation of Skills England, which aims to address the UK’s long-standing skills shortages. By reforming the Apprenticeship Levy into a more flexible Growth and Skills Levy, businesses will have greater control over their training investments, ensuring they can access the skills they need to thrive.

The MTA’s commitment to ensuring that the manufacturing sector remains at the forefront of skills development aligns with the new government’s vision. Our active involvement with the Department for Education’s intermediary ambassador network, as well as our partnerships with other key stakeholders, will ensure that the sector’s voice is heard in the creation of a national skills agenda.

A transformative year ahead

As we look to the end of 2024 and into 2025, the MTA is more determined than ever to support the UK’s manufacturing sector through this critical period of transformation. The King’s Speech has laid out an ambitious legislative programme, and the commitment to modernising and re-industrialising the UK is clear. With the government’s renewed focus on infrastructure, skills, and innovation, UK manufacturing is poised for growth.

The MTA remains at the forefront of this change, ensuring that our members and the wider industry can benefit from the new opportunities that lie ahead. We will continue to champion the role of manufacturing in building a resilient, sustainable economy that can compete on the global stage.

By embracing the new government’s vision, the UK manufacturing sector can truly realise its potential, creating jobs, driving innovation, and building a greener, more prosperous future for all.

James Selka is CEO of the MTA

For more information: 

www.mta.org.uk

Tel: +44 (0) 20 7298 6400