UK Manufacturers see industrial strategy as a ‘game changer’ for investment and productivity

13 February, 2025

The findings are drawn from the annual Make UK/PwC Senior Executive survey, which captures the views of senior manufacturing executives on the opportunities, risks, and challenges they face in the year ahead, as well as their outlook for the UK and global economies.

The survey highlights manufacturers’ optimism about the benefits of an industrial strategy, despite challenges such as rising costs and the threat of a trade war. A majority of manufacturers see the UK as a competitive place to produce goods, with nearly two-thirds (63%) stating that the opportunities for their businesses in 2025 outweigh the current risks. However, the survey also reveals a divided view on the UK economy, with as many executives expecting it to deteriorate as improve by 2025.

In response to these mixed economic signals, manufacturers are demonstrating resilience by prioritising innovation, upskilling, and market expansion. Many companies are turning to new technologies and automation as a means of mitigating rising costs and improving operational efficiency.

Make UK is now calling on the Government to urgently detail its plans for a long-term industrial strategy following recent consultations, arguing that such a strategy is crucial to sustaining business confidence and strengthening the relationship between industry and government.

Stephen Phipson, Chief Executive of Make UK, said: “Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive. But, they can only do this if they are operating in the most favourable business environment and there is little doubt that the next twelve months are set to be immensely challenging in a complex international environment.

“To help companies navigate a way through these challenges it is now vital that Government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy given the very clear benefits manufacturers believe this will bring. By doing this, it will help re-boot business confidence and ensure the year gets off on a positive footing in terms of the relationship between industry and Government.”

Cara Haffey, Leader of Industrials and Services at PwC UK, added: “While it’s true that UK manufacturers are navigating a complex business landscape – compounded by rising costs – there’s a palpable sense of optimism and resilience underpinning the sector’s trajectory for 2025. This optimism is fuelled by hopes of increasing clarity on the proposed UK industrial strategy, as well as a decisive shift towards technology adoption. The sector is moving from viewing technology as a source of incremental improvements towards acknowledging its power to transform operations.