Government launches new strategy for manufacturing, ‘the unsung hero of the economy’

The new strategy – called ‘New Challenges, New Opportunities’ – will, it says, help UK firms take advantage of changing global trends in manufacturing. However, although the joint effort from the Department for Business and the Department for Innovation, Universities and Skills was broadly welcomed by manufacturers, it did not offer an antidote to the current economic turmoil, said the manufacturers’ organisation EEF. At the Manufacturing Technologies Association (MTA), Simon McVicker said his initial reaction was positive. “However the analysis also clearly shows how manufacturing in the economy has declined in the past 10 years and hopefully this strategy will reverse that trend,” he went on. “Ultimately this strategy can only be judged on the delivery of these proposals and the long-term effect they will have on the many SMEs in manufacturing. The one major disappointment is that the role of trade associations does not seem to have been recognised and MTA believe that this is key in delivering this sort of strategy. For that reason I believe we will have to talk further to the Government.” The government announcement today (8 September), said the strategy brought together £150 million of medium term support for UK manufacturing, and set out Government’s view of what the sector needed for success in the long term. These included seizing the opportunities of the low carbon economy, supporting skills, realising overseas opportunities, and improving the perceptions and understanding of manufacturing. Although critics have accused the labour government of pampering the service sector at the expense of manufacturing, it said today that manufacturing was “still very much a UK success story and the unsung hero of the UK’s economy”. Business Secretary John Hutton (pictured) said: “Manufacturing is central to the success of the UK economy and it is vital the sector has the right foundations to endure the current economic slowdown and emerge stronger and fitter than ever.” The strategy, which appears to say and offer little that’s new includes: · An undertaking that the Office of Nuclear Development will work with industry partners to develop the nuclear supply chain and maximise high value-added work captured by UK manufacturers from an estimated £20bn capital expenditure in nuclear. And a new Office for Renewable Energy Deployment will be established to address barriers to renewables deployment including helping to develop the UK supply chain. Nuclear and renewables alone could create up to 260,000 jobs over the next ten years. · 1,500 new manufacturing apprenticeships to be created by inviting bids from larger manufacturers to train additional apprenticeships, including for their supply chains, and a simpler way for manufacturers to get support on skills and training. · Additional UK Trade & Investment (UKTI) resources to identify manufacturing value chain opportunities in India and China. · A new Manufacturing Technology Centre in Coventry. · A new body, ‘Manufacturing Insight’ tasked with improving the image of manufacturing and a ‘Manufacturing the Future’ schools campaign to promote manufacturing career prospects to young people. EEF chairman, Martin Temple, said that as with all such announcements, the next step for the government was “to deliver and back the positive words with firm actions of intent and support”. He added that there remained an immediate short term need to help industry and the wider economy through the current global economic turmoil "This is a strategy for the long term and one we applaud. However, it does not detract from the need to use policy in the short term to help companies through the current turmoil and ensure they are in a position to take advantage of the upturn," he concluded.