Rob Allen
Senior Policy and Research Manager, Policy Connect
Mike Reader MP
Member of Parliament for Northampton South
The Government’s commitment to publishing a modern Industrial Strategy is a welcome step to providing manufacturing businesses with much-needed certainty.
It has been a turbulent decade for the UK’s manufacturing sector. Brexit tore up the rulebook for businesses that sold their goods into the EU, the Covid-19 pandemic disrupted global supply chains, and Russia’s invasion of Ukraine led to a spike in energy costs not seen for a generation.
Addressing skills and modernising manufacturing
The forthcoming Industrial Strategy aims to drive growth and seize opportunities to lead in new sectors, with high-quality, well-paid jobs. UK manufacturing will play a vital role in many of these growth-driving sectors, including clean energy, defence and life sciences. However, growth will not be possible without modernising the manufacturing sector and addressing skills gaps. UK manufacturing has a bigger gap than in almost any other sector, with 55,000 unfilled long-term vacancies nationwide.
Progress in recent years
The introduction of Local Skills Improvement Plans helped ensure post-16 technical education is more responsive to the needs of local employers. The new Government has also created an arm’s-length body, Skills England, which will bring forward strategic oversight of England’s currently fragmented skills system.
It must be formed with a mandate to focus on delivery, rather than another round of consultation on skills requirements and qualifications. Time is of the essence if we are to see change in this Parliament.
Improving the attractiveness of a
career in the manufacturing sector
requires the industry to modernise.
Creating career appeal
Improving the attractiveness of a career in the manufacturing sector requires the industry to modernise. Modern, advanced manufacturing often removes physical, exhausting, low-paid jobs from the sector and instead creates quality digital, engineering-skilled work, which is what jobseekers are crying out for.
However, we still have some way to go if we are to create a sustainable pipeline of talent. This should start with efforts to increase the number of people choosing STEAM subjects and should be supported through increased funding for vocational subjects and better access to careers advice.
Why the stakes are high
The Manufacturing sector employs 2.6 million people nationwide and contributes £224 billion GVA to the economy. However, skills gaps throughout the sector are estimated to cost £6 billion annually, and we risk further losses without investment in a skilled workforce capable of meeting the needs of a modern Industrial Strategy.
