TARGETED ACTION to revitalise domestic supply chains could inject £30bn into the economy by 2025, creating more than half a million jobs across the UK, according to the Confederation of British Industry.
Based on new research carried out by management consultants at AT Kearney, a new CBI report reveals underinvestment in research and development, a growing skills crisis and weakened foundation industries that are key to advanced manufacturing - such as plastics, metals and chemicals.
To tackle these issues, the CBI is urging the Government and business to act together to strengthen supply chains, focusing on innovation, better quality products, and excellent customer service.
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.
“This could provide a £30bn boost to the economy, and create half a million extra jobs.”
The CBI is calling for policies to help increase R&D spending and to establish a UK-wide materials strategy to help British industry compete effectively on the global stage.