The Government has 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.

The strategy, which has been developed by the Department for Business and the Department for Innovation, Universities and Skills, in partnership with industry, brings together almost £150 million of medium term support for UK manufacturing. It 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.

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.

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%. The Government 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
• 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.