Forget oily rags and dirty shop floors, today’s UK manufacturing sector is amongst the most advanced in the world. From Electric Vehicle production in Sunderland to aerospace innovation in Bristol, businesses are using Artificial Intelligence (AI), robots, 3D printing, and other cutting-edge technology, to supercharge productivity. 

What is advanced manufacturing? 

Advanced manufacturing can be used to describe any production process that is developed using new technology and following highly-skilled research. For example, domestic vaccine development, as part of a life sciences sector that exported £24billion of goods in 2021, or the UK’s automotive industry, which uses a range of robotic processes and accounted for £15.2 billion Gross Value Added (GVA) in 2022. It is important to note that the term ‘advanced’ refers to the manufacturing process, rather than the product.  For example, many everyday items use complex composite materials that require a significant amount of research and development before being brought to market. The sector has also seen a significant boost following recent advances in digitisation and the need for decarbonisation to meet the UK’s net zero goal. However, if the benefits associated with these shifts are to be realised, the sector will need to draw on the UK’s strong academic base, leading research and development facilities, and highly skilled population. 

What are the conditions needed for long-term success? 

Investment. Investment within the manufacturing sector is key for business expansion, improving efficiency, and allowing innovation. However, the skills and technology needed to support advanced manufacturing do not come cheap. Although manufacturing is one of the UK’s leading sectors in terms of investment, accounting for 14% of all business investment and 47% of R&D expenditure, more support and certainty from Government is needed. A robust Industrial Strategy will help with this. 

Innovation. From invention of the of the jet engine to development of the world wide web, the UK has a successful track record as a leader in innovation. However, we risk losing this advantage without continued investment in innovation. Although the UK is home to many of the world’s top universities, a lack of collaboration between manufacturing and academia means that fewer ideas are converted to commercial success compared to other developed nations. 

Skills. The ‘skills gap’ is an acute problem within the advanced manufacturing sector, given its reliance on Science, Technology, Engineering, and Maths. There are currently 61,000 vacancies in the manufacturing sector and these skills shortages are anticipated to cost the UK economy around £6 billion annually. It is therefore vital that the Department for Business works closely with the Department for Education to ensure that education providers across England and the devolved administrations can provide the manufacturing sector with the skilled workforce it needs to deliver on the forthcoming industrial strategy. 

How can advanced manufacturing deliver growth? 

Advanced manufacturing has been identified within the Government’s Industrial Strategy Green Paper as one of the sectors that can offer the highest growth opportunities for the economy. This is justified for a number of reasons, including a growing demand for products made using advanced manufacturing processes, such as consumer electronics; the technologies that will be required for the green transition and to deliver on the Government’s 2050 net zero goal; and the increase in resource scarcity resulting in a need for production processes that minimize raw material and energy use. 

We welcome the identification of advanced manufacturing as a key growth-driving sector within the Industrial Strategy. The All-Party Parliamentary Manufacturing Group seeks to work with the Government to deliver on the forthcoming targeted sector plan for UK manufacturing, which will form part of the Industrial Strategy later in the Spring.