Strengthening UK industrial supply chains could provide a £30 billion boost for the UK economy over the next decade and create 500,000 jobs.
The claim is made in a new CBI report which looks at ways of reinvigorating the industrial heart of Britain.
It calls for the Government and business community to work together to tackle the widening skills gap in various sectors, reverse underinvestment in research and development projects, and increase support to “foundation” industries key to the advanced manufacturing of plastics, metals and chemicals.
The CBI wants a long-term target established to raise public- and private-sector spending on R&D to 3% of GDP; a doubling of Innovate UK’s budget; the financial incentivising of science, technology, mathematics and engineering degrees; and a new national strategy to protect and enhance critical supply chain sub-sectors.
CBI deputy director-general Katja Hall said: “We need to see a bold strategy that breathes new life into our supply chains, and makes the UK the destination of choice for manufacturing high-value products. This could provide a £30bn boost to the economy, and create half-a-million extra jobs.
“The scale of the challenge is sizeable our competitors are powering ahead, with France outstripping our research and development investment by 40%. At the same time, only 3% of our graduates end up in engineering or technology jobs.
“We need policies which focus on creating long-term value from increasing R&D spending, to establishing a UK-wide materials strategy to enable industry to play to its strengths and compete effectively on the world stage.
“This renaissance in British manufacturing will make it a byword for innovation and quality.”
The new CBI report is based on research carried out by management consultancy AT Kearney.
Strategic operations partner Charles Davis said: “After years of decline, the UK industrial base has stabilised and, with the correct industrial strategy, we can and should look for growth. This will be vital to the long-term health of the UK.”