The manufacturing sector in the UK is hoping to grow its share of GDP from 10% to 15%, and it’s calling on the government for support. According to a recent report, if the manufacturing industry manages to increase its contribution to GDP by the desired amount, £142 billion would be added to the UK economy.
The report also highlighted that 90% of manufacturers supported having a national target for industry growth, rather than focusing on regions separately. However, 75% of these manufacturers were also unaware of an industry strategy announced earlier in the year, entitled ‘Plan for Growth’.
Manufacturing Seeks Government Help to Boost Growth
Though the government has already highlighted manufacturing as a clear sector for growth and has implemented numerous plans to support this, the industry feels as though more support is needed. There were measures put into place post-pandemic to help the industry bounce back and continue trading as normal, but experts believe more imaginative solutions are needed to ensure the manufacturing industry’s full potential is reached.
Despite the industry wanting to grow its share of GDP from 10% to 15%, this is not considered to be an overly ambitious target. However, the government does need to help companies who are confident enough to make big investments. Things such as the Annual Investment Allowance and expanding the R&D Tax Relief Scheme are incentives, but these need to be pushed further.
Around 52% of companies are planning to grow their business by more than 20% within the next five years, and 24% are planning to grow by up to 20%. Plus, a further 18% of companies want to grow their business by up to 10%. All of this growth is key for the manufacturing industry but without government incentives, people within the industry are unlikely to feel the support and push they need. Manufacturers are seeking incentives such as prioritising investments, investing in apprentices and stronger local industry strategies.