UK Government urged to supercharge ‘sovereign capability’

UK manufacturing is ready to meet the call for more ‘sovereign production capability’ according to a new survey out today, but industry will need Government support to achieve it. The findings, which will be discussed at the launch of MACH 2026 today in Birmingham, reveal that thousands of firms are keen to support the national mission to reduce the UK’s manufacturing dependence on international partners, especially in the wake of recent global conflicts and economic uncertainty.

Around three-quarters of the 358 manufacturers questioned said they would be willing to do more to build up capacity in key sectors like defence, energy and transport, but only a quarter of these can meet demand immediately. The others said it would take up to six months to be able to help, which reveals a potential bottleneck in the supply chain if action isn’t taken now.

Manufacturing bosses said the biggest barrier was access to funding (34%), followed by lack of space (28%), cost of financing (27%) and economic uncertainty (24%). They called on the Government to help the ‘sovereign push’ by providing grants (59%), greater tax incentives (50%) and more support for training.

Reducing critical overseas reliance
James Selka (pictured), CEO of the Manufacturing Technologies Association (MTA), which hosts MACH every two years, said: “On the eve of the UK’s national manufacturing and engineering show, we felt it was the right time to take the temperature of firms when it comes to building ‘sovereign’ capability and reducing our critical overseas reliance. As you can see from the findings, there is a real appetite from industry to meet the challenge, but the message from our community is that it needs to be supercharged by the powers that be in the Government and at the Treasury.”

He continued: “Immediate access to finance appears to be the pivotal issue. With this in mind, it might be an idea for the Government to look at how it could support investment in critical sectors to help accelerate their expansion and access to capacity. We believe that this survey shows that there is a case for a ‘sovereign capability fund’ to support companies involved in sectors such as defence, aerospace, medtech and energy.

“This is where the British Business Bank could step-up and support more of UK manufacturers to make vital components here. Germany’s Deutschlandfonds, which will lever in 130 billion euros, is a great example of what can be done if a national Government is prepared to work closer with industry to encourage investment. As a nation, we need to ambitiously step up and act now, or suffer the consequences.”

The MTA’s snap survey also delved into early views of the much-anticipated Industrial Strategy. Feedback from the shopfloor suggests progress has been limited, with over half (55%) saying it has had no impact on their business and that they could not ‘see any way in which it would in the future’.

When asked about what the Government says it is delivering, the most meaningful benefit to manufacturers would be ‘lower energy prices’ (57%), with UK firms battling some of the highest costs in the world. A targeted skills package was the second most popular answer, with greater ‘investment in zero emissions vehicles manufacturing through grants and R&D support’ third.

Impact of rising costs
Mr Selka added: “We are approaching the first anniversary of the Industrial Strategy, and it is clear from our survey that industry, at best, remains unconvinced that it will deliver what is required. It came as no surprise that help with energy came out as the area where most support is required. This is what our members are telling us every day, and the impact of rising costs is making the UK uncompetitive against international rivals who enjoy far cheaper prices. Importantly, this is a message that must be heard and acted on. Our firms are feeling the pinch now and can’t wait five years for a raft of sustainable energy improvements to kick in.”

Set over five days this week (20-24 April) at the NEC, Birmingham, MACH 2026 is a major event in the UK’s industrial calendar and attracts an anticipated 30,000 people from the manufacturing community and more than 500 companies. More than £250 million of business is expected to be completed during the five days, as some of the country’s most innovative firms unveil new technologies and machines designed to boost productivity and global competitiveness.

MACH, which has a huge focus on sustainable manufacturing and carbon reduction through its six Knowledge Hubs and 14 Technology Zones, is also a big attraction for young people looking for a career in industry, with 4,000 students (aged between 12 and 18) set to attend the show. This year sees a packed CPD certified seminar programme, with topics including ‘how AI is reshaping manufacturing’, ‘strategy for technology adoption’ and ‘unleashing the power of automation’.

James Fudge, head of operations at the MTA, concluded: “MACH 2026 has been designed to guide and support manufacturers in addressing threats to business prosperity, such as rising operational costs, skills shortages and supply chain disruptions, enabling them to remain competitive in an evolving marketplace. This is reinforced by a recent visitor survey, revealing that 68% of attendees are actively seeking new technologies and services during their planned visits. There is no other event like it in the UK industrial calendar.”

MACH is owned and organised by the Manufacturing Technologies Association (MTA), which also encompasses a cluster of organisations, including Engineering Supply Chain UK (ESCUK), Additive Manufacturing UK (AMUK) and MTA Training.

The full results of the snap survey can be viewed at the MACH 2026 website here.