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Industrial strategy must address manufacturing ‘perfect storm,’ unions and firms say

UNIONS and employers have set out recommendations for the government’s industrial strategy in a joint report published today.

Make UK and the TUC warned that manufacturers faced a “perfect storm” of an ageing workforce with a drop in the new number of apprenticeships.

The sector is also facing occupational ill-health and a lack of digital skills, and the two organisations stressed that a priority should be consultations on plans for a growth and skills levy.

They called for a root-and-branch review of the apprenticeship levy, better government support for employers to take on industry placements, and a greater focus on digital skills.

TUC general secretary Paul Nowak said: “Britain faces huge industrial challenges, with AI, automation and net zero set to change the way millions work.

“It is vital that people have the skills and training they need to be able to adapt and that employers in key sectors like manufacturing are not left with huge labour shortages.

“A properly trained and fairly treated workforce is essential for improving growth and productivity across the country.”

Make UK chief executive Stephen Phipson said: “Making it easier for companies to take on more apprentices and supporting apprenticeship providers to deliver more manufacturing and engineering courses must be the first step in delivering a modern industrial strategy.

“If the new government is to achieve their ambitious plans for economic growth, policymakers must take urgent action to tackle the perfect storm the industry is facing.”

Ruth Wilkinson, of the Institution of Occupational Safety and Health, added: “Having a diverse workforce furnished with this can support businesses in building cultures conducive to high productivity.”

A government spokesperson said: “Our new industrial strategy will deliver long-term, sustainable and inclusive growth right across the UK by driving investment into our economy.”

 

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