Aaron Merkin, Chief Technology Officer of Fluke Reliability shares views on the future of the UK manufacturing industry following the Labour government’s first budget announcement since 2010.
In addressing the spending investment proposed to a sector clawing its way back after a series of difficulties, Merkin said, ‘‘In a sector integral to the growth of the economy, it’s good to see the promise of the new UK government being fulfilled. The promise of the Labour manifesto was to invest in the sector through its strategic partnerships and Industrial Strategy Council, and despite the challenges of the reality they inherited, its given hope to UK manufacturing that they are able to stick with their promise. The recent dip in the manufacturing PMI to 51.5 illustrates a wary approach from businesses as they’ve waited for clarity, but the clarity has now been provided and it is exciting to see what comes next.
Considering the challenges facing the economy, such as supply chain disruptions, inflation, and geopolitical tension, the commitment to investment is the turning point UK manufacturing has been waiting for.
With over £2bn committed to funding a modern industrial strategy for the automotive sector, and £520m for a new Life Sciences Innovative Manufacturing fund, there is a lot of growth potential for these industries of the future.
Investment into such sectors can enable manufacturing enterprises based in the UK to combat industry challenges, such as the global skills shortage, by utilizing tools that are often overlooked due to tightening budgets. For example, our own smart manufacturing research has revealed that enterprises are setting ambitious targets to accomplish Industry 5.0 goals before the end of 2025, including adoption and implementation of Artificial Intelligence (AI). AI has become the highest investment priority for 93% of companies, as it allows firms to improve operational efficiency, predictive maintenance, and resource allocation, and with support from the government, the industry as a whole is expected to meet these ambitious goals even quicker.
The increased investment completes the expectation from the Labour government that they will create a pro-business environment that supports innovation, investment and high-quality jobs. We’re excited to see the evolution for our customers with such support behind them. This is really just the starting point for the next wave of innovation from the manufacturing sector – and with significant funding committed – is expected to put UK manufacturing at the forefront of the next phase of the industrial revolution.”
