A Route Plan for Manufacturing: Britain’s New Industrial Strategy

An effective industrial strategy must address the assets the supply chain needs to support tier-one suppliers. Currently, developers often undertake speculative builds with a certain amount of power available, without knowing the specific needs of the end occupier. There is a strong case for using nuclear and hydrogen power for these units. However, developers lack knowledge about hydrogen, highlighting the need for better communication and collaboration with suppliers and universities to explore development possibilities.

The government must be accountable for the industrial strategy but should allow the industry to support its delivery, fostering greater collaboration between the two. The UK's collaborative efforts can be highly effective, but there is concern that the government may not facilitate this collaboration adequately.

The focus of the industrial strategy should be on economic growth rather than immediate job creation. Economic growth will naturally lead to job creation within the supply chain. Currently, overseas companies face challenges in securing government funding for building facilities in the UK because they do not initially employ enough people. Despite this, such support is crucial. For instance, cost plans for Chinese manufacturers considering a move to the UK reveal that it is 20% more expensive to build here due to higher employment costs, utility expenses, and lower levels of automation compared to other countries.