It is now just over a year since the launch of the government’s Industrial Strategy. Announced to much fanfare last summer, the plan outlined a roadmap for the nation’s industrial future, promising funding for advanced manufacturing and identifying targeted areas of growth.
Since then, we’ve of course had tariff disruption from the US administration, conflict erupting and then ongoing in the Middle East (bringing with it supply chain challenges and rising energy costs), and of course, the announcement of a change of leadership at number 10, and the prospect of yet another new Prime Minister before the year is out.
But what does this mean for the Industrial Strategy? When launched – and in the following months – the strategy was not without its detractors, particularly from the SME community. And many in the sector have maligned the strategy as failing to deliver the support that was promised, while others have criticised the roll out as missing a huge opportunity to back British manufacturing.
Despite its critics, the government published a document last week outlining the strategy’s progress. And, on the face of it, there are reasons to be positive.
Statistics revealed that so far the government has:
- Attracted more than £380bn of private sector commitments to high-growth sectors, supporting over 155,000 jobs
- Cut electricity bills by reducing network charges and supported faster electricity grid connections
- Allocated £9bn for cutting edge research and commercialisation of new technologies
- Launched a nationwide push to upskill ten million workers in AI by 2030
However, further research has emerged which suggests many manufacturers are still waiting for the promised support to reach them.
One year on from its launch, the Industrial Strategy is falling short on delivery. While the ambition and direction remain strongly backed by manufacturers, there is a clear gap between policy announcements and business level impact. Most businesses have yet to feel the benefit, with a concerning 55% reporting no impact so far. Crucially, industry continues to support the Industrial Strategy itself – the issue is not the vision, but whether it is being delivered at the pace and scale required.
Stephen Phipson CBE, CEO, Make UK
New Censuswide research, commissioned by Fluke, found that while 61% of UK manufacturers say they’ve benefited from the strategy in some way, fewer than one in three (28%) have received direct grant funding.
Paraic O’Lochlainn VP of eMaint, a Fluke Corporation brand, stated that one year on from the launch of the UK’s Industrial Strategy, the argument for strengthening domestic manufacturing has become much harder to ignore. The aforementioned geopolitical tensions and continued pressure on global supply chains have shown how important it is for the UK to have the skills, infrastructure and industrial capacity to stand on its own two feet.
He commented: “There are encouraging signs. Yesterday the government shared its progress over the past 12 months, highlighting cuts to electricity bills, faster grid connections, and £9bn allocated for cutting edge research and commercialisation of new technologies. But many manufacturers are still waiting to see the strategy translate into tangible support on the ground.
“Skills remain one of the biggest challenges affecting businesses. Committing over £1bn to train people with the necessary skills to work in key industries such as manufacturing is a start, but we need to see this leading to real life changes faster. Our research found that only 32% of manufacturers have hired or trained staff through government-backed programmes, despite 90% saying skills shortages are having a direct impact on their organisation. Closing industrial skills gaps requires a bold, integrated approach that brings together education, industry and government to rapidly upskill the existing workforce and grow the future one.
“The same applies to technology adoption. If UK manufacturers are going to compete globally, they need greater support to invest in the tools and innovation that drives resilience. Despite significant public investment in industrial policy, fewer than one in three manufacturers report receiving direct grant funding, with the UK trailing competing markets when it comes to incentives for R&D.
“If the UK is serious about reshoring, reindustrialisation and long-term resilience, the next phase of the Industrial Strategy must focus on delivery. Manufacturers need easier access to funding, stronger support for workforce development and greater incentives to invest in innovation. The ambition is there but turning that ambition into lasting economic growth will depend on how effectively businesses are enabled to act on it.”
Stephen Phipson CBE, CEO of Make UK added: “One year on from its launch, the Industrial Strategy is falling short on delivery. While the ambition and direction remain strongly backed by manufacturers, there is a clear gap between policy announcements and business level impact. Most businesses have yet to feel the benefit, with a concerning 55% reporting no impact so far. Crucially, industry continues to support the Industrial Strategy itself – the issue is not the vision, but whether it is being delivered at the pace and scale required.
“This matters more now than it did 12 months ago. It’s been a tougher year for manufacturers. Costs are still high across the board, pressure is increasing at home, and global uncertainty hasn’t gone away. That’s left many businesses using capital to stay afloat instead of investing. And that changes what the Industrial Strategy needs to deliver. It can’t just set long-term direction anymore; it has to help businesses deal with immediate pressures and unlock investment now. Without that, the growth opportunity risks slipping away.
“The priority for year two is clear: shift from policy design to delivery. Government needs to reduce the cost base, get capital flowing into businesses more quickly, and make sure reforms actually translate into real change on the ground. Industry is still behind the Strategy, it doesn’t want a new plan, but it does need to see this one delivered. Otherwise, it risks becoming another well intentioned strategy that doesn’t make a difference where it matters.”
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