Manufacturers see industrial strategy as game changer

13 January, 2025

“Additionally, there's a strong focus on innovation, with companies investing in new product lines and business development to seize growth opportunities. This approach, alongside efforts in product development, upskilling, cost management, and embracing technology, positions manufacturers well to navigate challenges and contribute significantly to national economic growth."

According to the survey, more than half of companies (57%) say they will increase investment in response to a long term industrial strategy. In addition, more than four in ten (43%) companies believe such a strategy will lead to increased productivity and a similar number (42%) say it will help them secure the skills they need for the future.

The survey also shows that, despite the challenges companies are facing at home and abroad, almost half of companies (49%) believe the UK remains a competitive place to manufacture compared to a quarter who disagree. In addition, almost two thirds of companies (63%) believe the opportunities for their business in 2025 outweigh the risks compared to just over one in ten (14%) who disagree.

Companies are responding to these challenges and opportunities by focusing on growth strategies with more than three quarters of companies (78%) developing new products, almost half deploying new technologies and more than a third (37%) planning to enter new markets.

However, despite these positive intentions, as many companies think the UK economy will deteriorate in 2025 (34%) as improve (37%), while the challenges of increased costs are severe. Over nine in ten companies (92%) think their employment costs will increase, more than three quarters (76%) think the costs from other business taxes will increase and a similar number (72%) expect their logistics and transport costs to increase.

In response, Make UK is urging Government to look at measures to mitigate these increases by reducing business rates in particular, as well as measures and incentives to aid decarbonisation and energy efficiency

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