Report warns of danger of complacency in manufacturing

The Wright Report, commissioned by the Labour party and written by Jaguar Land Rover director Mike Wright (pictured), has recommended a stronger focus on advanced manufacturing. Wright said: "It would be easy to conclude, given the current success of many UK based advanced manufacturing companies, that the sector's contribution to a sustainable recovery here is secure. It is not. "Much progress has been made, but the sector has reached a crucial point in its evolution. What we do now will make the difference between long-term success and marginalisation." He said that if the country took its current progress for granted and failed to invest, it would miss a once in a generation opportunity to compete and succeed in one of the world's most competitive sectors. The report said the single biggest strategic challenge for advanced manufacturing in the UK was the availability of skilled people. It recommended doubling the number of engineering apprentices qualifying at advanced level – from 23,500 to 50,000 each year – by the end of the next Parliament, with corresponding increases in other manufacturing related areas. It also said additional spending on science and technology should be the first priority for any additional public resources to support advanced manufacturing. "At the moment the large science budget is ring-fenced. We should extend the ring-fence to include both the £4.6 billion science budget and the £440 million technology budget administered by the Technology Strategy Board, and increase this total as soon as possible." Wright added: "My whole working career has been spent in the UK based automotive sector, including under European, US, and now Indian company ownership. From my first export assignment in Germany in the 1980s, through subsequent roles involving over 50 other countries, I have witnessed the speed with which other economies around the world have transformed their manufacturing capabilities. "In most cases it has been because their successive governments have placed the sector at the forefront of national economic strategy. So it should be no surprise that my key challenge in this report is for politicians and policy makers to put at the heart of their thinking the global context in which the advanced manufacturing sector operates." Terry Scuoler, chief executive of EEF, said: "Industry will be behind this important review. It focuses on some of the top policy priorities for government - a stable and competitive corporate tax environment, a dynamic financing landscape, funding to boost the skills of the existing workforce and building a reliable pipeline of young people for industry and additional funding for innovation." "It clearly demonstrates why advanced manufacturing is a crucial part of our economic recovery, and central to sustainable growth in the UK. I hope all parties will take the recommendations on board if they want to secure the investment we need to develop our manufacturing supply chain capacity." Scuoler, added: "Innovation is critical to the long-term success of the UK's manufacturing industry. While manufacturers are highly innovative, the process of innovation itself and, the important follow-on commercialisation remains persistently challenging, with limited access to facilities and expertise. These are particularly pertinent for smaller manufacturers. "Government support has an important role to play in helping companies bring their innovations to market but, as the Wright Review identifies, expenditure in this area is both inadequate and uncertain. A commitment to higher levels of funding for innovation support through the Technology Strategy Board would provide a valuable boost to manufacturing and, its supply chain."