Manufacturers report decline in road infrastructure while digital investment boosts growth
Research from Make UK has found that more than half of Britain’s manufacturers believe the national road infrastructure has deteriorated over the past decade. This decline has led to higher logistics costs and challenges in labour mobility and access to skills. The study, titled “Infrastructure: Enabling Growth by Connecting People and Places,” highlights that 54% of manufacturers perceive a worsening in road conditions, with 75% acknowledging the critical role of road networks in their supply chains. Additionally, over half of the respondents disagreed with the decision to cancel the northern leg of HS2
Conversely, the research indicates a positive trend in digital infrastructure. Approximately 64% of companies reported improvements in digital connectivity over the last ten years, largely due to significant investment in 5G and other digital technologies. This enhanced digital infrastructure has allowed 44% of manufacturers to invest in new technologies, leading to increased profitability and job creation. Moreover, 71% of companies believe that better quality infrastructure contributes to higher productivity.
The study also uncovered regional variations in perceptions of infrastructure quality. Manufacturers in the North West were particularly critical, with 68% observing a decline in road infrastructure, compared to 43% in the North East. This discrepancy may be attributed to differing levels of investment in public transport and road infrastructure across the regions.
The report suggests that successive governments have prioritised cost over potential benefits when evaluating infrastructure projects. However, the success of digital infrastructure investment demonstrates the positive impact that strategic investment can have on growth. The research draws parallels to historical projects, such as the Channel Tunnel, which, despite initial criticism, now contributes significantly to the UK economy.
Stephen Phipson, CEO of Make UK, urged the new Government to adopt a bold approach to infrastructure investment, particularly in repairing roads and supporting local authorities. He emphasised the need for enhanced local decision-making and investment in bus networks to improve connectivity and support the manufacturing sector. Phipson also called for long-term rail projects to strengthen east-west connections and ensure equitable opportunities across the UK.
https://www.linkedin.com/company/makeuk/
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