Industrial strategy set to drive re-shoring surge

28 October, 2024

The fact that half of businesses surveyed are prepared to increase investment in existing UK operations is a strong sign of confidence. After years of economic uncertainty, this commitment to expand local operations and modernise through automation is a step in the right direction. It suggests that UK manufacturers are ready to position themselves as key players in a more resilient and self-sufficient economy.

The survey also highlights that UK-owned companies are already leading in investment intensity, outpacing foreign-owned firms in both plant and machinery and R&D. This shows that domestic businesses have the drive and capability to scale up. With the right industrial strategy in place, there is a real opportunity to capitalise on this momentum, fostering homegrown innovation and enhancing the UK’s competitive edge globally.

Make UK is calling for the formation of sector-specific groups to focus on future technologies and national security. These groups, if given the necessary resources and support, could help the UK become more self-sufficient and resilient in critical areas like advanced manufacturing. With global competitors such as the US, Europe, and China moving quickly on green technologies, it is vital that the UK keeps pace to remain competitive and ensure its industries are future-proofed.

There are still challenges, of course. High interest rates and the cost of raising finance remain barriers for some businesses, but the overall sentiment is clear: manufacturers are ready to invest, grow, and innovate. A strong, consistent industrial strategy could unlock this potential, driving growth in UK manufacturing, creating jobs, and boosting productivity. 

While re-shoring alone won’t solve all the challenges facing the sector, it’s a solid foundation. With the right policies and investment, British industry has a real chance to thrive in the years ahead.

Aaron Blutstein, Editor