DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/187)
issued by COI News Distribution Service. 8 September 2008
The Government
today unveiled a new strategy for the UK's manufacturing
sector - 'New Challenges, New Opportunities' - to help
UK firms take advantage of changing global trends in manufacturing.
In bringing forward its refreshed manufacturing strategy,
developed by the Department for Business and the Department for
Innovation, Universities and Skills, in partnership with industry,
the Government is reaffirming is commitment to the sector as a key
part of a mixed and balanced UK economy in the future.
The strategy brings together almost £150 million of medium term
support for UK manufacturing, and sets out Government's view
of what the sector needs for success in the long term - including
seizing the opportunities of the low carbon economy, supporting
skills, realising overseas opportunities, and improving the
perceptions and understanding of manufacturing.
The government recognises these are demanding times and is
committed to doing all it can to help manufacturers to get through
them. But despite the current challenging global economic climate,
and recent downturns in the sector, there is reason to be
confident. And it is right to have a medium term framework to help
businesses emerge from these challenging conditions and remain
competitive in an increasingly globalised sector.
Britain has the open and flexible markets that will allow
British business to react to changing and challenging
circumstances and manufacturing is still very much a UK success
story and the unsung hero of the UK's economy.
Business Secretary John Hutton said: "Manufacturing is
central to the success of the UK economy and it is vital the
sector has the right foundations to endure the current economic
slowdown and emerge stronger and fitter than ever.
"We are the world's sixth largest manufacturer - the
industry accounts for over half our exports, contributes £150
billion to the economy and around three million jobs. But we need
to recognise that the global landscape is changing so we can help
UK manufacturers stay ahead of the game. I want the UK to be at
the forefront of opportunities opened up by the move towards a low
carbon economy. With the right support in place, we can grow our
nuclear and renewables industries to become world-leaders in green
technologies, supporting hundreds of thousands of "green
collar jobs.
"And for many years the industry's success has suffered
from a lack of public recognition, and it is time we redressed
this balance. We must attract more talented young people - the
lifeblood of future success - into the industry and ensure that
this talent is nurtured and developed."
Skills Secretary John Denham said: "We want to support
innovation in UK manufacturing by maintaining a world-class
research and development infrastructure, through intelligent use
of Government procurement and regulation to stimulate markets and
the growth of innovative business, and to build world-class skills.
"We want businesses to be able to nurture and develop the
talent of their people, so we will make it easier for
manufacturing employers to access skills support and extend the
number of high-quality apprenticeships available by supporting
firms in training additional apprentices.
"Building on the successes of our innovation strategy,
we'll continue to drive innovation in high-value
manufacturing, with the Technology Strategy Board investing an
additional £24m in research and development to help British
manufacturers not only maintain but increase their technological
and innovative edge over global competitors."
The strategy sets out Government's view of what the sector
needs for success in the long term. It includes:
Seizing the opportunities of the low carbon economy
Next year, a low carbon industrial strategy will address the
challenges facing manufacturers as they try to reduce their carbon
footprint and the huge opportunities from investment in energy and
a shift to a low carbon economy. The Office of Nuclear Development
will work with industry partners to develop the nuclear supply
chain and maximise high value-added work captured by UK
manufacturers from an estimated £20bn capital expenditure in
nuclear. And a new Office for Renewable Energy Deployment will be
established to address barriers to renewables deployment including
helping to develop the UK supply chain. Nuclear and renewables
alone could create up to 260,000 jobs over the next ten years.
Supporting skills
There will be a new focus on apprenticeships. This will see 1,500
new manufacturing apprenticeships, in addition to the 9,000 places
announced earlier this year which will increase the total number
of manufacturing apprenticeships by over 10%. We will expand the
new places by inviting bids from larger manufacturers to train
additional apprenticeships, including for their supply chains. And
for manufacturers, there will be a simplification of the ways they
can access support on skills and training with a MoU published
today by the skills agencies on how they will work to do that.
Realising overseas opportunities
Manufacturing attracts more FDI to the UK than any other country
in Europe and globally the UK is second only the US. Manufacturing
growth in other countries means opportunities for the UK. UK Trade
& Investment (UKTI) will allocate additional resources to
target a package of new support for 600 UK companies of all sizes
to identify manufacturing value chain opportunities in India and
China. And the UK Intellectual Property Office (UK-IPO) will
advise on using and protecting IP in these markets.
Improving technology networks
In addition to the existing centre in Yorkshire and the centre
currently being built in Glasgow, there will be a new
Manufacturing Technology Centre in Coventry. It will have
industrial scale pre-production and demonstration facilities,
which could lead to £130 million of investment in business-led
applied research and its exploitation over the next 10 years. And
the Technology Strategy Board will invest £24 million into
research central to high vale added manufacturing.
Changing the image of manufacturing
A new body, 'Manufacturing Insight' will be tasked with
making the public perception of manufacturing reflect the realist
of a successful, modern and broad sector and ensuring young people
are aware of the exciting career opportunities available will be
established. There will also be a 'Manufacturing the
Future' schools campaign to promote manufacturing career
prospects to young people.
Making the most of 'intangibles'
Firms in the UK are using other areas of leading British skills
and industry to make them more globally competitive. UK and global
businesses are growing their investment in intangible or knowledge
assets, such as software, design, brand building in order to
improve their global competitiveness and to meet the changing
needs of customers. The Design Council and Regional Development
Agencies will implement the findings of the current review of the
Designing Demand programme to increase penetration of the
programme across the regions. We have supported the creation of
the UK Design Skills Alliance and will work with the Alliance to
help ensure the world leading UK design sector has the skills
required by manufacturers to compete in global markets.
The refreshed strategy is intended to inform dynamic process and
will shape further new policies and programmes in the future. It
replaces the Government's manufacturing strategy of 2002,
which was the first strategy for the sector for more than 30 years.
Notes to Editors
1. "Manufacturing: New Challenges, New Opportunities,"
and supplementary materials published jointly by the Department
for Innovation, Universities and Skills and the Department for
Business, Enterprise and Regulatory Reform, are available at http://www.berr.gov.uk.
2. The refreshed strategy is based on extensive consultation and
working with the Ministerial Advisory Group on Manufacturing (MAG)
and other stakeholders. http://www.berr.gov.uk/sectors/manufacturing/MAGonmanufacturing/page47668.html
3. Rise in applications to study STEM subjects at university.
UCAS figures for applicants accepted for entry in autumn 2007 show
there have been increases in acceptances for STEM subjects. This
includes physics (+9.8%), chemistry (+8.8%), biology (+3.5%),
maths (+9.3%), Combined maths/computer science (+16.3%), as well
as most of the engineering subjects including chemical engineering
(+11.5%), Civil engineering (+10.3%) and Mechanical engineering (+4.6%).
4. STEM in the labour market. DIUS is leading a study, in
collaboration with BERR, DCSF and the Prime Minister's
Strategy Unit, to analyse the demand for STEM skills from all
employers to understand employer needs and the UK's future
needs for STEM skills. Key Stakeholders including CBI, Research
Councils, EEF, BCB and others will be involved in gathering
evidence and interpreting its findings. The report will be
produced in October 2008.
5. Working with schools and colleges. In June this year John
Denham asked two university Vice Chancellors - John Coyne, VC of
Derby University and Julia Goodfellow, Kent VC and past Chief
Executive of the BBSRC, to report to him on how volunteer
universities could work directly with schools to raise attainment
in the key STEM subjects, especially with a view to reaching
schools where science performance is poor in order to help deliver
our widening participation goals.
6. Science and engineering ambassadors (SEA). Through the Science
and Engineering Ambassadors programme, more than 20,000 expert
volunteers representing companies and organisations of all sizes
are supporting school activities, offering mentoring, career
guidance and are positive role models. There is a target to
increase SEAs to 27,000 by 2011.
7. Science funding. The science budget will increase from £3.4bn
per year, this year to almost £4 billion per year by 2010/11 -
taking Government support for the UK's research base to its
highest level ever. We remain second only to the US in global
scientific excellence (as measured by citations), while
collaboration between the research base and business continues to
grow ever stronger.
8. Innovation and the Technology Strategy Board. We want to make
sure that Britain is the best place to run an innovative business
or service - this is critical to the UK's future prosperity,
our quality of life and future job prospects - and, in March 2008,
published a White Paper, Innovation Nation, to help to achieve
this. The Technology Strategy Board will develop and lead a
strategic programme worth £1 billion over the next three years.
The TSB will be investing £100M in eight collaborative R&D
technology areas.
9. Apprenticeships. Over the past ten years, the Government has
more than doubled the number of young people and adults starting
apprenticeships. Last year, 184,000 people started high-quality
apprenticeships spanning the entire economy - from veterinary
nursing to film production. Ministers anticipate the numbers will
grow further over the next 10 years as, from 2013, all suitably
qualified school leavers will be entitled to an apprenticeship.
Completion rates have nearly trebled over the past five years,
reaching an all-time high of 63%, comparable with the best in Europe.
10. The skills system. The Government has already taken a number
of steps to simplify the landscape on skills for manufacturers.
These include: major changes to enhance the Apprenticeships
programme announced in World Class Apprenticeships; a commitment
to rapidly expand the Train to Gain service, with funding expected
to reach over £1 billion by 2010-11; sector skills compacts with
two Sector Skills councils ProSkills and SEMTA making £127m of the
Train to Gain budget available to their manufacturers over the
next three years; and a Business Support Simplification programme
to streamline business support at the national, regional and local
level from over 3,000 schemes to fewer than 100.
11. In March this year, HM Treasury and the Department for
Business, Enterprise and Regulatory Reform jointly published
"Enterprise: Unlocking the UK's Talent", a new 10
year strategy to make the UK the most enterprising economy in the
world - and the best place to start and grow a business. http://www.berr.gov.uk/enterprisestrategy
12. The Department for Business Enterprise and Regulatory Reform
helps UK business succeed in an increasingly competitive world.
It promotes business growth and a strong enterprise economy, leads
the better regulation agenda and champions free and fair markets.
It is the shareholder in a number of Government-owned assets and
it works to secure, clean and competitively priced energy supplies.