UK manufacturers await direct support from strategy

The UK Government said it has made progress on its Modern Industrial Strategy, but new research commissioned by Fluke suggests many manufacturers have yet to see direct financial support.

According to the Government, the strategy has attracted more than £380 billion in private sector commitments to high-growth sectors, supporting more than 155,000 jobs. It also highlighted lower electricity bills through reduced network charges, faster grid connections, £9 billion for research and commercialisation, and a national effort to train 10 million workers in artificial intelligence by 2030.

Against that backdrop, Censuswide research for Fluke found that 61% of UK manufacturers said they had benefited from the strategy in some way, while 28% said they had received direct grant funding. The survey covered 199 UK respondents as part of a wider sample of 600 manufacturing representatives across the UK, Germany and the US.

The findings suggest a gap between broad policy measures and support companies can access directly. They also indicate that while ministers have outlined spending and investment commitments, many manufacturers remain focused on the practical effects on staffing, technology investment and day-to-day operations.

Skills pressure

Skills shortages emerged as one of the clearest concerns in the research. Fluke said 90% of manufacturers reported that skills shortages were having a direct impact on their organisation, yet only 32% had hired or trained staff through government-backed programmes.

The Government has committed more than £1 billion to training people for work in key industries, including manufacturing. For many businesses, however, the issue is less about headline funding totals and more about whether training schemes reach employers quickly enough to address immediate labour shortages.

Manufacturers are also watching how industrial policy supports technology adoption. The Government's update highlighted public investment in research and new technologies, but Fluke's commissioned research indicated that direct incentives remain limited for many companies seeking to modernise production or improve resilience.

Industry response

Paraic O'Lochlainn, Vice President of eMaint, a Fluke brand, said manufacturers were looking for faster delivery.

"One year on from the launch of the UK's Industrial Strategy, the argument for strengthening domestic manufacturing has become much harder to ignore. Recent geopolitical tensions and continued pressure on global supply chains have shown how important it is for the UK to have the skills, infrastructure and industrial capacity to stand on its own two feet.

"There are encouraging signs. Yesterday, the Government shared its progress over the past 12 months, highlighting cuts to electricity bills, faster grid connections and £9 billion allocated for cutting-edge research and commercialisation of new technologies. But many manufacturers are still waiting to see the strategy translate into tangible support on the ground.

"Skills remain one of the biggest challenges affecting businesses. Committing more than £1 billion to train people with the necessary skills to work in key industries such as manufacturing is a start, but we need to see real-life changes happen faster. Our research found that only 32% of manufacturers have hired or trained staff through government-backed programmes, despite 90% saying skills shortages are having a direct impact on their organisation.

"Closing industrial skills gaps requires a bold, integrated approach that brings together education, industry and government to rapidly upskill the existing workforce and grow the future one. The same applies to technology adoption. If UK manufacturers are going to compete globally, they need greater support to invest in the tools and innovation that drive resilience.

"Despite significant public investment in industrial policy, fewer than one in three manufacturers report receiving direct grant funding, with the UK trailing competing markets when it comes to incentives for R&D. If the UK is serious about reshoring, reindustrialisation and long-term resilience, the next phase of the Industrial Strategy must focus on delivery.

"Manufacturers need easier access to funding, stronger support for workforce development and greater incentives to invest in innovation. The ambition is there, but turning that ambition into lasting economic growth will depend on how effectively businesses are enabled to act on it."

Delivery test

The Government's figures present the strategy as a vehicle for investment, jobs and lower operating costs. For manufacturers, the next test is whether those commitments lead to broader access to grants, training and support for upgrading equipment and processes.

The survey suggests some benefits are already being felt, with a majority of respondents saying they had gained from the strategy in some form. But the smaller share reporting direct grant support indicates that many firms still do not see the state as an immediate source of practical help.

That distinction matters for sectors such as food and beverage, oil and gas, life sciences and automotive, where production depends on access to skilled labour, reliable energy and ongoing investment in plant and systems. Businesses in those industries are often affected quickly by supply chain disruption, higher costs and delays in project approvals.

The broader policy aim of strengthening domestic industrial capacity has gained prominence as companies and governments reassess supply chain risks and national resilience. The Government's update argued that the first year of the strategy has created momentum, while the responses gathered by Censuswide suggest many manufacturers still judge progress by what reaches the factory floor.

Fewer than one in three manufacturers report receiving direct grant funding, with the UK trailing competing markets when it comes to incentives for R&D.