CBM welcomes the Government’s new Industrial Strategy

CBM president Steve Morley with CBM CEO Geraldine Bolton

The Confederation of British Metalforming (CBM) has heralded the Government’s new Industrial Strategy as ‘the most joined-up and manufacturing-focused plan it has seen in years’. The 10-year vision includes the launch of the British Industrial Competitiveness Scheme, which will see a reduction in electricity costs by up to £40MW/hr for energy-intensive sectors, such as the hugely important automotive and aerospace markets that CBM members regularly supply.

Stephen Morley, president of the CBM, said: “It has been a long-drawn frustration for everyone involved in manufacturing that the previous Government had ignored an industrial strategy. But not anymore. Labour has shown a commitment that goes a long way to getting us back on track. I have been critical of some of its measures in the past, yet I have to say fair play for listening to the voice of business, and, specifically, manufacturing.

“The work of the Industrial Strategy Advisory Board, the B5 (especially the CBI and Make UK) has been fundamental, and they have listened to our insights and the feedback of both our members and other important Trade Associations. This has all contributed a major part to where we are today.”

He continued: “The recognition that high industrial energy costs, not just on electricity, have long been a millstone around the neck of UK manufacturing, particularly for our members in forging, stamping, fasteners and fabricated metals. This week’s announcement is a major step towards levelling the playing field with European and global competitors.”

Urgent support required
The CBM, which represents the interests of 200 members and a sector employing 70,000 people and generating £27 billion in sales, did have some caveats. Mr Morley added: “While recognising the Government’s push to decarbonise, our members will rightly ask when will the support be delivered? Energy savings from 2027 won’t help firms in crisis today. Consultation must be rapid, transparent, and inclusive, which means the continued exclusion of gas costs for high-intensity users must be addressed. This is absolutely vital for the forging and heat treatment sectors, where prices per ‘therm’ have more than doubled since January 2022 and will never be returning to that price.

“The CBM will engage directly with the Department for Business and Trade and the B5 on the upcoming energy consultation process and will advocate for the inclusion of all core and supply chain metalforming businesses in energy support schemes. I believe the Industrial Strategy recognises the importance of SMEs, which is particularly pleasing. Made Smarter is a fantastic example of how targeted support can make a massive difference and it was good to see this being underpinned by access to ‘growth capital’ through public schemes like the British Business Bank.”

CBM CEO Geraldine Bolton was especially pleased to see skills so high on the priority list. “The commitment to upskill the nation with an extra £1.2 billion each year for skills by 2028/29 is excellent news. In particular, we welcome the targeted support for skills packages in engineering and look forward to finding out more details about this. We have been lobbying hard on skills and feel we have had real constructive engagement from government on skills for engineering, particularly at level 2 which is in drastic need of reform.

She concluded: “The CBM has put together many solutions for consideration and hope to see these come to fruition through our partnerships with the Metals Council, Enginuity and stronger ties with the Government.”