A new report by the Confederation of British industry (CBI) has suggested that major investment in domestic supply chains could inject £30bn into the economy by 2025 – creating an additional 500,000 jobs.
Based upon research conducted by A.T. Kearney, a global management consultancy firm, the Pulling Together report recommends a number of ways to reinvigorate the UK’s struggling supply chain.
It also recognises UK businesses’ weaknesses, which the report says include a lack of investment in research and development (R&D), a growing skills gap and poor performing foundation industries that were vital to advanced modern manufacturing in Britain.
Katja Hall, CBI deputy director-general, said: “The molten metals of manufacturing have long coursed through the veins of our economy.
“Optimism within industry is now rising at a strong rate, and investment intentions are on the up.
“But it’s time for some fresh thinking. We need to see a bold strategy that breathes new life into our supply chains, and makes the UK the destination of choice for manufacturing high value products.”
The RBI has called on the Government to increase R&D tax credit for companies to support the later stages of product creation, double spending on the UK’s innovation agency, add financial incentivises to success in STEM subjects and asked for the creation of a national materials strategy.
Charles Davis, strategic operations partner at A.T. Kearney, said: “As the challenges of global supply chains become better understood, companies are beginning to look beyond the headline cost to the true value. Winning will be through supply chains that drive revenue, not just striving to be the lowest cost.”
