Supply chain change could lead to 500,000 new jobs, says CBI

Pulling Together recommends ways to kick start the UK's supply chains, and suggest ways to reinvigorate Britain's industrial strategy. Based on new research carried out by management consultant A.T. Kearney, the report reveals underinvestment in R&D, a growing skills crisis and weakened foundation industries that are key to advanced manufacturing. To tackle these issues, the CBI has urged the Government and business to act together to strengthen supply chains, focusing on innovation, better quality products, and excellent customer service. It has called on Whitehall to set a long-term target for public and private sector spending on R&D to rise to 3% of GDP. It said it also wanted the R&D tax credit to be widened to support the later stages of the commercialisation and manufacture of innovative British products and for spending on the UK's innovation agency, Innovate UK, to be doubled over the course of the next parliament Katja Hall, CBI deputy director-deneral, said: "The molten metals of manufacturing have long coursed through the veins of our economy. Optimism within industry is now rising at a strong rate, and investment intentions are on the up. "But it's time for some fresh thinking. We need to see a bold strategy that breathes new life into our supply chains, and makes the UK the destination of choice for manufacturing high value products. This could provide a £30bn boost to the economy, and create half a million extra jobs." She added: "The scale of the challenge is sizeable - our competitors are powering ahead, with France outstripping our research & development (R&D) investment by 40%. At the same time, only 3% of our graduates end up in engineering or technology jobs. "We need policies which focus on creating long-term value - from increasing R&D spending to establishing a UK-wide materials strategy - to enable industry to play to its strengths and compete effectively on the world stage. "This renaissance in British manufacturing will make it a byword for innovation and quality."