A new survey by Make UK and RSM UK reveals strong industry confidence that the UK’s forthcoming industrial strategy will accelerate the reshoring of offshore manufacturing production. Nearly 70% of manufacturers believe the strategy will drive production back to British shores, with only 3% anticipating no impact. The findings highlight expectations for increased domestic investment, automation adoption, and export growth to EU markets as key benefits of a long-term industrial policy framework.
Calls for Swift Implementation of Sector Plans
With the government’s green paper on industrial strategy recently announced, Make UK urges rapid formation of specialized sector groups—particularly for advanced manufacturing—to focus on developing future technologies and strengthening national supply chain resilience. The organization emphasizes these groups should have cross-departmental support to maximize their effectiveness in positioning UK industry for global competitiveness. Industry leaders stress the urgency of matching international efforts in green technology investment, particularly as the US, EU, and China advance their own industrial programs.
Investment Trends Favor Domestic Manufacturers
Contrary to conventional wisdom, the survey reveals UK-owned manufacturers demonstrate higher investment intensity than foreign counterparts—allocating 8.7% of resources to plant/machinery versus 4.7% for international firms, and 5.5% to R&D compared to 5%. This data suggests homegrown businesses stand ready to scale operations given proper strategic support. Manufacturers identify several policy priorities for the Autumn Statement including corporation tax reduction (56%), expanded capital allowances for software investment (53%), and extended expensing provisions for leased equipment (46%), while nearly one-third cite high interest rates as their primary financing obstacle.
Current Investment Priorities Revealed
Plant/machinery upgrades and workforce development remain top investment focuses for the coming year, with 53% and 52% of manufacturers prioritizing these areas respectively. The survey provides nuanced insights into UK industry’s capital allocation, showing 64% of firms invest up to 10% of turnover in equipment, while 26% commit 10-50%. R&D investment follows similar patterns, with 72% allocating up to 10% of turnover and 18% investing 10-50%, demonstrating varied but substantial commitments to innovation across the sector.
Strategic Clarity Expected to Unlock Growth
Industry leaders emphasize the transformative potential of a coherent industrial strategy. “Strategic clarity will unlock growth, innovation and even kickstart a reshoring bonanza,” notes RSM UK’s Mike Thornton, highlighting anticipated benefits including job creation and productivity gains. As manufacturers increasingly adopt automation and digital technologies, the policy framework could prove pivotal in determining whether UK industry capitalizes on current investment momentum or falls behind international competitors in the critical years ahead.
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