Make UK report says manufacturers welcome an industrial strategy

Britain’s manufacturers believe the introduction of an industrial strategy will help them increase investment, boost productivity, and secure the skills they need for the future, according to Make UK and PwC UK’s Executive Survey 2025. 

The report is based on the views of more than 150 senior executives on the opportunities, risks and challenges for their business in the year ahead, as well as the outlook for the UK and international economies. Over half of companies surveyed say they will increase investment in response to a long-term industrial strategy. 

While more than four in ten believe such a strategy will lead to increased productivity, a similar number say it will help them secure the skills they need for the future.  The Executive Survey also reveals that, despite the current challenges from escalating costs and a potential trade war, the majority of manufacturers believe that the UK remains a competitive place to do business, with business opportunities in 2025 far outweighing current risks.

But just as many think the UK economy will deteriorate as grow in 2025. While over 9 in 10 manufacturers expect employment costs to rise, with around three quarters expecting other cost increases around business taxes, logistics and transport in particular.

Make UK CEO Stephen Phipson said:“Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive.

“But, they can only do this if they are operating in the most favourable business environment and there is little doubt that the next twelve months are set to be immensely challenging in a complex international environment.  To help companies navigate a way through these challenges it is now vital that Government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy given the very clear benefits manufacturers believe this will bring. 

“By doing this, it will help re-boot business confidence and ensure the year gets off on a positive footing in terms of the relationship between industry and Government.”

He added that there is a strong focus on innovation, with companies investing in new product lines and business development to seize growth opportunities. “This approach, alongside efforts in product development, upskilling, cost management, and embracing technology, positions manufacturers well to navigate challenges and contribute significantly to national economic growth,” he said.

“While it’s true that UK manufacturers are navigating a complex business landscape – compounded by rising costs – there’s a palpable sense of optimism and resilience underpinning the sector’s trajectory for 2025. This optimism is fuelled by hopes of increasing clarity on the proposed UK industrial strategy, as well as a decisive shift towards technology adoption. The sector is moving from viewing technology as a source of incremental improvements towards acknowledging its power to transform operations.

“Additionally, there’s a strong focus on innovation, with companies investing in new product lines and business development to seize growth opportunities. This approach, alongside efforts in product development, upskilling, cost management, and embracing technology, positions manufacturers well to navigate challenges and contribute significantly to national economic growth.”