How IMechE is seeking to shape the new Industrial Strategy

Last year, the new government came to power on a promise to boost the economy. Key to this is its new Industrial Strategy, which chancellor Rachel Reeves described as a “10-year plan to deliver the certainty and stability businesses need to invest in the high-growth sectors”. It identifies eight sectors with the potential to drive growth, including advanced manufacturing, clean energy and defence.

When a government embarks on such a wide-ranging plan, the process involves broad stakeholder engagement. The first step was to publish a green paper, Invest 2035: The UK’s Modern Industrial Strategy, which sets out the plan in draft format and asks stakeholders 35 questions about the strategy. The IMechE’s policy team worked with our expert member committees across the Institution to draft a response. The five key messages we are making to the government are as follows:

1. Engineering as a foundational sector

Engineering not only underpins each of the eight growth-driving sectors, but it is essential to their development. Technology development, investment and productivity improvements are engineering-related topics that will be important to ensure growth is achieved. 

2. National engineering and technology workforce strategy

To address the demands of the Industrial Strategy, we advocate for a comprehensive national engineering and technology workforce strategy. This is vital to ensuring the UK has a robust pipeline of skilled engineers and technicians to lead progress in the sustainable development and innovation needed to deliver the government’s goals, including for growth-driving sectors and missions. 

3. Systems thinking 

Integrating systems thinking within the Industrial Strategy is essential for effective problem-solving and implementation. A systems approach would enable coordinated, scalable and sustainable solutions across industries, strengthening the UK’s global competitiveness. 

4. Invest in infrastructure and clusters 

Large-scale demonstration and test facilities have proven successful in advancing high-integrity engineering solutions, especially when co-located with industry clusters. These sites are places where innovative ideas and approaches can be introduced and showcased to validate and support scale-up. This proximity enables faster, more efficient development by bringing together all players in the value chain – an approach that we believe should be prioritised. 

5. Commitment to a long-term strategic policy 

To ensure sustainable growth and productivity increases, the UK government must prioritise long-term strategic decisions and leverage tools to better align with the growth-driving sectors. By using policy levers such as government procurement, financing mechanisms, education and skills development, and regulatory frameworks, the government can create a supportive ecosystem that nurtures innovation and fosters investment. This is essential for providing stability and direction to industry sectors, enabling businesses to plan for the future and ensuring the UK is competitive on a global stage.

Download a summary of IMechE's response to the government here.