The introduction of a long-term industrial strategy will bring a “surge” of offshore manufacturing production back to the UK, according to a new report.
Research conducted by the trade body Make UK found that 70% of its members expect the reshoring of their activities to accelerate following the publication of Labour’s industrial strategy green paper, titled ‘Invest 2035: The UK’s Modern Industrial Strategy’.
The strategy was launched last week, with business and trade secretary Jonathan Reynolds saying that it would give investors “the confidence to plan not just for the next year, but for the next 10 years and beyond.”
‘Imperative’
Long-term strategies are “imperative to creating a competitive, predictable and stable economic environment for businesses,” said the report.
“The new government has an incredible opportunity to reset the risk appetite of business and get investment flowing again.”
More than half of manufacturers (53%) say they are planning to invest in plants and machinery over the next 12 months, with a similar amount (52%) anticipating they will put resources into labour and skills.
The report also said that the government shouldn’t “pull the rug” from under manufacturers by making too many radical changes to existing incentives for investments.
‘Unleash’ investment
“Manufacturers are poised ready for the government to unleash the benefits to investment from a long-awaited industrial strategy,” said Fhaheen Khan, senior economist at Make UK.
“It’s clear that this will bring a wide range of benefits and aid companies who are accelerating their moves into greater use of automation and digital technologies, with the increased recruitment of higher-level skills.
“Given the US, Europe and China are moving at pace with plans to boost investment in green technologies in particular, the UK needs to match these efforts step for step.”
Optimism
Marco Forgione, director general of the Chartered Institute of Export & International Trade, last week said he was “optimistic” about the new strategy.
“Over the past two years, the Chartered Institute of Export & International Trade has submitted insights and inputs from our research, as well as the views of Chartered Institute members, to the Labour Party both in opposition and, since the election, in government.
“Having heard the broad principles laid out by the chancellor and business secretary, I am optimistic that the new industrial strategy will be unequivocal, long-term and will be supported by a comprehensive trade strategy.”
