Setting the policy agenda for UK manufacturing

IPE: The MTA often plays a bridging role between industry and government. What are your early priorities as President in terms of advocacy and shaping future policy discussions?

Stewart Lane: My absolute priority is to make sure that Government, both officials and ministers, really understand the challenges UK manufacturers face so that they can build policies that support a sector key to national growth and our long-term resilience. Government has already taken some important steps, but I want to see continued efforts to accelerate investment in the latest manufacturing technologies, real support for skills development and an unrelenting focus on bringing down the cost of operating in the UK. That might include taking action on energy costs where the Government has already made some important announcements, but it also includes the shape of future employment policy
IPE: The decision to raise the Living Wage in the Autumn Budget looks set to place additional pressure on businesses and, in particular, SMEs. What are some of your major policy asks from the Government as 2026 gets underway?

SL:  Never forget that the sector, as a whole, delivers above average pay rates and we pride ourselves on offering great quality employment opportunities, but there can be no doubt that continued upward pressure on entry point pay will have its impact, particularly for the smallest firms. Beyond that, we’ve got some real concerns around the Employment Rights Act. I see a real danger that if we introduce over-restrictive regulation, we will deter companies from creating more of those great quality, well-paying jobs.

IPE: Manufacturers continue to report skills shortages across machining, automation, and digital roles. From your perspective, what practical steps could help firms attract and retain the next generation of engineers?

SL: It’s vital that we as the MTA, and our members continue to shine a spotlight on the incredible companies and opportunities that exist in our industry to shape the world. As an association, we also work very hard to showcase our sector by bringing over 3,000 students to the MACH exhibition and ensuring the next generation are able to see the exciting technologies and job opportunities within our industry. It’s interesting to note that elsewhere in the world, manufacturing, engineering and technology roles are seen as high value esteemed occupations. Here, too often perceptions of manufacturing are trapped in the Nineteenth Century. We’ve got to change that - make clear that it’s our manufacturers who are changing the world, taking us to the heavens, cleaning up our planet and putting food on our tables.

IPE: Many MTA members are still dealing with long and unpredictable lead times for components and raw materials. How do you see supply chain resilience evolving in 2026, and what support do members need most?

SL: I’m pleased to see that there is growing attention to the supply chain challenges we face. Technology is increasingly enabling us to viably manufacture to demand, allowing competitive manufacturing at or near home. 

Similarly, we’ve seen a number of members reevaluating their supply chains and looking at reshoring or near-shoring suppliers. The UK has a strong supply base and, together with Engineering Supply Chain UK (one of our cluster trade associations) we continue to showcase the capacity and capability of the UK market, but we also need Government to be an active partner. It has a key role to play in attracting those inward investments that flesh out UK supply chains hollowed out by years of under-investment, stimulating and supporting domestic investment, striking the trade deals that ensure our ability to access key components or, crucially, rare earth substances. That’s not just good news for the sector, it’s also key to our national security and resilience as the Government’s Resilience Action Plan makes clear.

IPE: Across the sector, firms are investing in automation to improve productivity, but adoption varies widely. Where do you think the biggest untapped opportunities lie for UK manufacturers, particularly SMEs?

SL: We lag behind other advanced economies on the adoption of robotics and other automation technologies. There is massive scope for not just repetitive and dirty tasks but for increasingly complex tasks so that the current workforce can be redeployed to other parts of the business.  Automation not only frees up talent for use in other spaces, we’ve seen time and again the role it has to play in cutting down errors and defects, reducing waste and clamping down on energy use. The difficulty is that initial investments can be challenging. I’ve been pleased to see the growth of equipment leasing but any help the Government can give to encourage companies to invest would be very welcome. 

IPE: Export conditions have remained challenging, with shifting standards, documentation requirements and international competition. What are you hearing from members about trading overseas, and what steps would help in terms of removing barriers?

SL: Overseas trading remains tough for many businesses, both in terms of agreements with other countries and increasingly complex paperwork when selling overseas. We’re working with a number of bodies to provide advice and assistance for our members and liaising with government to encourage more frictionless trading agreements. Our message to Government is ‘keep doing what you’re doing’ - keep pushing forward on new trade deals and - please - never let up on working to eradicate bureaucracy at the borders.
IPE: The UK’s productivity gap remains a persistent issue. From the vantage point of the MTA, what practical levers could make the biggest near-term difference? 

SL: The single biggest change would obviously come from accelerated adoption of new technologies. Our members deliver the tools that can help all of UK manufacturing to design and make market leading products. Our industry has the answer and I would urge UK manufacturers to visit the MACH show in April to see how our members and other exhibitors can assist them, and also utilise our Knowledge Hubs to receive impartial practical advice on adopting and successfully implementing new technologies. We look forward to seeing you at the NEC between 20-24 April!

Stewart Lane is president of the Manufacturing Technologies Association

For more information:

www.mta.org.uk

Tel: +44 (0) 20 7298 6400