Industrial Strategy to Drive UK Manufacturing Growth in 2025

Industrial Strategy Seen as a Game Changer for UK Manufacturing

A long-term industrial strategy could significantly impact UK manufacturers by driving investment, enhancing productivity, and securing essential skills for the future, according to the latest Make UK/PwC Senior Executive Survey.

Despite facing economic uncertainties, most manufacturing leaders remain hopeful, with 63% believing that the opportunities in 2025 will outweigh the risks. More than half (57%) of companies plan to boost their investment in response to an industrial strategy, while 42% think it will help tackle skills shortages.

UK Manufacturing Remains Competitive Amid Challenges

The survey reveals that, despite cost pressures and global trade issues, 49% of manufacturers still view the UK as a competitive manufacturing hub, while only 25% disagree. However, economic uncertainty lingers, with an equal number of companies expecting the UK economy to worsen (34%) as those who anticipate improvement (37%) in 2025.

To stay resilient, UK manufacturers are focusing on:

Product Innovation: 78% are working on new product development.
Technology Adoption: Nearly half are investing in new technologies.
Market Expansion: 37% plan to explore new markets.

Rising Costs Pose a Significant Challenge

While businesses are dedicated to growth, rising costs continue to be a significant concern:

92% of manufacturers expect an increase in employment costs.
76% foresee higher business tax expenses.
72% anticipate rising logistics and transport costs.

Make UK is urging the Government to promptly outline a formal industrial strategy, providing clear policies to support manufacturing growth, alleviate cost pressures, and accelerate decarbonisation efforts.