UK Manufacturing Policy

UK manufacturing policy has long been a topic of debate, from the radical shifts of the 1980s Conservative government to the more recent impact of Brexit. Manufacturing in the UK has often played second fiddle to the UK’s economic giant—financial services.

However, in recent months, the global landscape has changed dramatically. Two key challenges now face the UK: rising tariffs and the urgent need to increase defence spending. As a result of the change in America, what was once a sidelined sector could once again become a driving force in the UK economy—a dynamic, agile, and comprehensive manufacturing industry.

Many industry leaders believe the time has come for a dedicated Minister for Manufacturing; a view Senex Recruitment a recruitment specialist in the Manufacturing sector (as well as Science and Engineering) fully supports. However, in this article, we go further arguing that only a separate Department for Manufacturing can effectively tackle the challenges posed by this shifting global order.

Why the UK Needs a Dedicated Department for Manufacturing

The UK has long been a powerhouse of innovation and engineering excellence, yet manufacturing remains an industry that often feels overlooked in the corridors of power. While the UK does have a Minister for Industry and Economic Security, currently Sarah Jones MP, this role is still part of the broader Department for Business and Trade (DBT) rather than a standalone department with a dedicated focus on manufacturing. Unlike science, technology, and even exports—each of which has its own department or ministerial representation—manufacturing remains bundled within wider business policy.

The establishment of the Industrial Strategy Advisory Council (ISAC) last year was a positive step toward fostering a stronger business environment, driving growth, and creating jobs across the UK. However, a closer look at its membership reveals a significant issue—manufacturing is largely underrepresented.

While Rolls-Royce provides a prominent voice for the sector, there is little else in terms of direct manufacturing input. Even more concerning is the lack of SME representation, despite the vital role smaller manufacturers play in the UK economy. Instead, the council leans heavily toward academia and trade unions, raising questions about whether the needs of the manufacturing industry—especially its smaller players—are truly being addressed.

It’s time for change. The UK government should consider spinning out manufacturing into its own department, ensuring the sector gets the focused leadership and strategic oversight it deserves.

The Problem: Manufacturing as an Afterthought

Manufacturing is a cornerstone of the UK economy, contributing over £200 billion annually and employing 2.6 million people. It plays a crucial role in exports, innovation, and national security, yet it remains part of a broad business portfolio rather than having a department dedicated solely to its development and expansion. While the DBT covers many aspects of industrial policy, its priorities are spread across a broad spectrum of business interests, from small enterprises to global trade negotiations. This dilutes the attention given to manufacturing and prevents the creation of a coherent long-term strategy.

Meanwhile, other sectors have rightly received dedicated focus. The Department for Science, Innovation and Technology (DSIT) was created to harness the power of research and development. While the current Minister for Trade Policy and Economic Security oversees some manufacturing-related matters, the sector would benefit from the same level of dedicated attention that other industries receive such as Transport, Energy, Rural Affairs, Culture Media and Sport.

It is vital to remember that Britain's economic strength was forged through manufacturing advancements during the Industrial Revolution—history proves that when manufacturing thrives, so does the nation and is a key part of our heritage. Therefore, it should be proudly represented by the UK Government at a Cabinet level.

Why Manufacturing Needs Its Own Department

A dedicated Department for Manufacturing would provide:

• Strategic Leadership: A single department focused solely on policies that support UK-based manufacturing, including investment in skills, infrastructure, and innovation.
• Policy Focus: Rather than competing for attention within DBT, manufacturing would have a clear, independent structure to push for industry-specific policies.
• Global Competitiveness: The UK faces fierce competition from nations such as Germany and the US, both of which have well-defined industrial strategies and the US now aggressively utilising tariffs. A dedicated department would ensure the UK keeps pace with these global leaders.
• Resilience & Security: Recent global supply chain disruptions (i.e. Brexit and Covid) have highlighted the importance of domestic production. A department dedicated to manufacturing would help bolster supply chain security and reduce reliance on external markets.

What Should the Portfolio Include?

If a Department for Manufacturing were established, its remit should address key industry challenges, including:

Skills & Workforce Development

• Strengthening STEM education and vocational training.
• Encouraging apprenticeships and retraining programmes to address skill shortages.
• Promoting engineering and manufacturing careers to young people.

Industrial Strategy & Investment

• Developing a long-term, cross-party industrial strategy to provide stability.
• Creating incentives for research and development in advanced manufacturing.
• Supporting UK-based manufacturers with investment in automation and digital transformation.

Supply Chain & Resilience

• Ensuring access to critical raw materials and safeguarding supply chains.
• Reducing reliance on foreign production and increasing domestic manufacturing capabilities.
• Supporting reshoring efforts where strategically beneficial.

Trade & Export Growth

• Working closely with the Minister for Exports to boost UK-made products overseas. It is important to remember that exported goods generate revenue for the UK, contributing to an increase in GDP. In contrast, products aimed at the domestic market do not stimulate growth in the same way.
• Negotiating trade policies that benefit domestic manufacturers rather than just big exporters.
• Championing ‘Made in Britain’ initiatives to enhance global competitiveness.

Sustainability & Net Zero Goals

• Driving the decarbonisation of manufacturing through investment in green technologies.
• Supporting the development of sustainable materials and processes.
• Ensuring regulatory frameworks help, rather than hinder, the transition to cleaner production.

Promote self reliance as a nation and develop closer ties with our key international partners

• Mitigate the impact of tariffs from an increasingly isolationist U.S. to safeguard UK trade.
• Strengthen the Defence sector to enhance self-reliance and protect the UK against potential threats.
• Promote robust supply chains and exports removed from the impact of political instability.
• Collaborate with other ministerial departments to reduce export barriers and promote free trade, addressing challenges like those imposed by the EU-UK Trade and Cooperation Agreement, which has disproportionately impacted manufacturing and goods imports/exports compared to the service sector.

Spinning Out Manufacturing from DBT: The Logical Next Step

The UK’s export strategy already operates under a dedicated Minister for Exports, recognising that trade requires specialist oversight. Manufacturing deserves the same treatment. Just as the DSIT was created to prioritise science and technology, a standalone Department for Manufacturing would allow for a laser focus on policies that directly impact the sector.

Without this structural change, manufacturing risks remaining an afterthought in broader business policy. The current arrangement within DBT means that industrial policy is often reactive rather than proactive, responding to crises rather than shaping the future. A dedicated department would ensure that manufacturing is consistently at the forefront of economic planning.

UK manufacturing policy – the need for change.

Conclusion

The UK government needs to stop treating manufacturing as just another subset of business policy and start recognising it as a strategic pillar of the economy. A standalone Department for Manufacturing would provide the leadership, focus, and advocacy needed to drive the sector forward, securing jobs, investment, and global competitiveness for years to come.

It’s time to give UK manufacturing the independent voice and strategic focus it truly deserves.

First steps for change, what can you do?

If you're passionate about UK manufacturing and want to see a shift in government policy, you'll find this article on the manufacturer's website interesting. While they haven't taken the full step of establishing a dedicated department, they are advocating for the appointment of a Manufacturing Industry expert in government to champion the sector's needs. This could be an important first step, so head over to the UK government website to add your support to the petition.