Fresh call for Minister for Manufacturing
Audit, tax, advisory and risk firm Crowe has provided a snapshot of the UK manufacturing market with the results of its Manufacturing Outlook Report 2024.
Johnathan Dudley, partner and head of manufacturing at Crowe, called for a Minister for Manufacturing to improve how the Government can best support the sector.
During a period of high inflation, political changes, and continued strained supply chains, Crowe’s analysis – conducted in partnership with the West Bromwich-based Confederation of British Metalforming – looked at the key issues impacting manufacturers.
The findings from nearly 90 respondents, included 87 per cent of manufacturers saying they are unhappy with the Government support currently provided to the sector.
Also 45 per cent view current global turbulence and economic conditions as barriers to growth, but nearly seven in 10 manufacturers expect a growth in sales this year
Mr Dudley said: “There is a clear reluctance to invest and borrow, and with funding from the government reducing as Covid-19 loans start to pay down, there is a real need for government intervention.
“Reshoring and near shoring should be back on the agenda, as access to raw materials, expertise, and the necessary funding to capitalise on the opportunities at hand are essential.
"For example, at present, the UK is incredibly efficient at recycling steel scrap, but only 25 per cent of it is processed and retained in the UK for supply, while the rest is exported. Local sourcing and greater control of supply chains is clearly necessary.
Mr Dudley added: “Large numbers have been thrown around by politicians in terms of support for manufacturers, but the proof will be whether this is actually spent on what the sector needs, as evidenced in this report.
“Businesses in this sector face many challenges, from financing to recruitment, but a looming election offers some hope. I’d like to see greater support for UK businesses, and a reduction of regulatory barriers for manufacturers in recognition of the vital role they play in the UK economy.
“The UK has a rich history in manufacturing. For this to continue, it is high time that a dedicated Minister for Manufacturing was established to unlock the sector’s potential and allow the UK to revive its position as a global manufacturing hub.
“Determining a long-term strategy, a Minister for Manufacturing can light the fuse of a new industrial revolution in the UK by aligning innovation, economic development, education and support nearly a million green jobs to help get this country making, building and adding value again.”
Stephen Morley, CBM president, said: “Manufacturing should be a priority for this UK government and the next. The challenges of 2024 present a great opportunity for the sector, with the UK government prioritising economic growth to pay the bills.
“The scene is set for manufacturing to drive UK growth and play a larger part in the UK economy’s GDP. We need significant investment and government support, focussing on an Industrial Strategy including a Minister for Manufacturing.”
