A new initiative
of up to £125 million is being set up to improve the global
competitiveness of UK advanced manufacturing supply chains,
Business Secretary Vince Cable announced today.
The Advanced Manufacturing Supply Chain Initiative aims to help
existing UK supply chains grow and achieve world class standards
while encouraging major new suppliers to come and manufacture
here.
The new fund will support innovative projects in established UK
advanced manufacturing sectors such as aerospace, automotive and
chemicals. It will also target newer growth areas where the UK is
well placed to take a global lead, such as energy renewables and
other low carbon sectors.
The competitive fund will invite applications early in the new
year and will be flexible in the type of support offered to
successful proposals, recognising that to fulfil their potential
and address market failures suppliers and supply chains may
require a combination of investment in capital equipment,
associated research and development and improved skills and
training support.
Business Secretary Vince Cable said:
“Recent economic and natural shocks such as the ash clouds,
tsunami and Japanese earthquake have shown the fragility of long
distance and single source supply chains.
“I want to seize on the increased preference that big global
companies are showing for co-locating key elements of their supply
chains with their UK manufacturing operations.
“British suppliers have a lot to offer and we need to help them
realise and develop their strengths and sell them on the
international market.
“While still encouraging free trade I also want to gain maximum
value for the UK by ensuring our suppliers are in the best
position possible to compete for the very significant new private
and public investments being made in the UK over the next few years.”
John Cridland, CBI Director-General, said:
“We welcome this new initiative which will help build UK supply
chain capability and resilience. It will enhance our manufacturing
competitiveness and build on strengths in advanced engineering,
research and innovation.
“Better coordination of effort and a concerted focus to develop
areas of comparative advantage will create new manufacturing jobs
and drive growth as part of a rebalanced economy.
“This initiative will help ensure we make the most of value chain
opportunities in key sectors such as chemicals, food, automotive
and aerospace. It is a clear step in the right direction as part
of a new approach to industrial policy.”
Chief Executive of EEF Terry Scuoler said:
“UK suppliers in manufacturing compare with the best in the world
but there are simply too few of them. Addressing this shortcoming
is vital as many companies are responding to the shocks of recent
years by looking afresh at how they manage their supply chains.
Now is the right time to provide a serious boost to our domestic capability.”
Applications will be assessed by the Technology Strategy Board.
Its Chief Executive, Iain Gray, said:
“Our goal is to accelerate economic growth by stimulating and
supporting business-led innovation. We are delighted to be
involved in running this competition, which provides an
opportunity to see innovation move rapidly into the market across
whole supply chains in a broad range of advanced manufacturing sectors".
The programme will complement and work alongside other publicly
funded schemes such as the Regional Growth Fund, Growth and
Innovation Fund, Manufacturing Advisory Service and UK Trade and
Investment to maximise impact.
Notes to Editors:
1. On 26 October Vince Cable announced that BIS would be looking
at how the Government can support UK supply chains across a number
of sectors critical for future growth.
2. Companies will be invited to express interest in applying
later this month and to bid formally early in the New Year.
3. The potential to stimulate new technologies and build stronger
supply chains in the UK is very considerable. For example the
Automotive Council, the joint industry-Government partnership, has
already identified over £1 billion worth of potential contracts
which manufacturers would like to place in the UK. Over £250
million of contracts have already been repatriated by General
Motors in the UK since 2010.
4. The initiative is based on an existing bid to the Regional
Growth Fund (RGF) led by a group of local enterprise partnerships
(Greater Birmingham and Solihull, Coventry and Warwickshire, Black
Country and Liverpool City Region) and Birmingham City Council
which focussed on the automotive and aerospace sectors and on a
specific regional area. We will expand the scheme’s coverage to
the whole of England and across advanced manufacturing sectors,
and will ensure national criteria and governance arrangements are
put in place. We would expect to have LEP and Local Authority
involvement in key aspects of the Initiative
5. As part of the process Government will open a dialogue with
potential applicants to help ensure we get the right and best bids
to affect long term positive change in UK advanced manufacturing.
6. Suppliers, including small and medium sized enterprises
(SMEs), will be encouraged to submit joint proposals that
demonstrate potential to strengthen and provide better join-up
across whole supply chains. For this reason, a threshold of £2
million for support has been set.
7. Applications will be assessed by the Government’s Technology
Strategy Board, which has a strong track record in supporting
credible advanced manufacturing projects which leverage
significant private investment and have buy-in from the prime
manufacturers at the top of supply chains.
8. The scheme is open to bids from all advanced manufacturing
sectors except those where barriers to entry are low or
displacement levels high.
9. Further details of the fund and how to apply will be provided
shortly on the Technology Strategy Board’s website at www.innovateuk.org.
10. BIS's online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Rebecca Murrell
Phone: 020 7215 6403
Rebecca.Murrell@bis.gsi.gov.uk