An eight-point action plan has been revealed by the UK metals sector to help it combat continuing high prices, trade policies that hamper competitiveness and a declining appetite to invest in apprentices.
The rallying call was made by the
UK Metals Council (UKMC) on the eve of UK Metals Expo this week the industry’s largest show held at the NEC.
Representing almost 11,500 companies and 1 million employees, the Council is calling for government to immediately simplify regulation and administrative burden, whilst also unlocking the circular economy and securing UK scrap resource for an industry that is critical to sovereign capability.
UKMC Chair Rachel Eade also believes more can be done to reduce unnecessary customs, quotas and trade friction, with an urgent need to change procurement approaches for defence and clean energy programmes that will boost guaranteed UK content.
The action plan follows the release of the largest State of the Metals Industry report yet, with 200 companies canvassed for their views on the current business landscape.
Four in five (79%) respondents said that current trade policies do not support their competitiveness, with 89% reporting that raw material prices are too high and 69% admitting that energy is still a major challenge.
Three quarters reported a limited pool of qualified candidates and almost half struggle to attract people with the skills or expertise they need.
“The findings leave little doubt about where action is needed,” explained Rachel Eade, MBE. “They provide a compelling evidence base for our eight key priorities that focus on securing competitive energy, maximising the value of UK scrap and the circular economy, addressing the skills challenge, strengthening procurement, and protecting and growing the UK’s supply and value-added chain.”
She continued: “With steel now recognised as a critical foundation industry, we urge Prime Minister Andy Burnham to translate positive rhetoric into practical action that strengthens domestic manufacturing supply chains where it matters most: on the factory floor.
“For that transformation to be realised, manufacturers need confidence that the Industrial and Steel Strategies will deliver meaningful change through competitive energy prices, access to skills, proportionate regulation, and a planning system that supports investment and growth.”
Pic: Rachel Eade, Chair, UK Metals CouncilThe UK Metals Council Report also revealed a mixed picture for the sector's outlook and priorities. Just 14% of metals companies expressed high confidence in the future, while 65% identified innovation as a high priority, despite only 21% planning to explore grants or other funding opportunities.
Interest in apprenticeships also appears to be declining, with the proportion of firms viewing vocational learning as a priority falling by 11 percentage points to 57%. On sustainability, more than half of businesses (54%) reported making steady progress towards achieving Net Zero goals. However, readiness for the introduction of the Carbon Border Adjustment Mechanism (CBAM) remains low, with fewer than one in ten companies saying they are fully prepared for its implementation.
Eade went on to add: “UK manufacturers remain resilient, innovative, and ready to invest. However, SMEs in particular need a fair and competitive environment in which they can grow, create jobs, and expand exports.
“This year’s findings show that many companies are successfully diversifying, with construction and energy joining automotive as the three most significant sectors served by the industry.”
After four years at the helm, Rachel Eade will be stepping down as Chair of the UK Metals Council, passing the baton over to Dr Pam Murrell, who has been involved in the sector for the last thirty years.
She is a passionate advocate for all things metal and has been the CEO of the Cast Metals Federation and current Vice President of the Institute of Cast Metal Engineers and Chair of the Industry Committee of the Worshipful Company of Founders.