The strategy outlines £4.3bn in funding for advanced manufacturing to spur innovation, automation, digitisation and commercialisation, and up to £99m from 2026 to expand the Made Smarter Adoption programme to support SME manufacturing businesses to take up new technologies.

Other plans within the strategy include upskilling domestic workers and reducing reliance on foreign workers by spending an extra £1.2bn each year on skills by 2028/29, including £187m on digital skills and AI learning.

Chris Phillips, Regional Head of Industrials in the North West at RSM UK, said:

“The region’s advanced manufacturing sector is already a world leader in terms of innovation, but has been held back by slower adoption of digital technology to secure long-term competitiveness, innovation and growth. It is therefore encouraging to see the strategy highlighting some key areas that will bring major benefits to the region, with both Greater Manchester and the Liverpool City Region directly acknowledged as having enormous potential.

“The creation of an independent Industrial Strategy Council to be headquartered in Manchester by 2026 shows the intent of government to ensure the benefits of the strategy are seen across the country but will help ensure the region’s voices are heard as part of ongoing developments and funding. The region has a rich history in manufacturing and innovation, having pioneered the world’s first passenger railway and programmable computer. The allocation of £160m in funding for an Industrial Strategy Zone in Manchester will therefore stimulate regional growth and ensure continued innovation and development of new products.”

He added:

“It’s also important there is a pipeline of skilled labour in the sector. The North West boasts some of the world’s leading universities, with expected regional funding and growth providing a great opportunity to ensure the region retains young, skilled talent once they’ve completed their degrees. This, along with the proposed creation of Technical Excellence Colleges and shorter apprenticeship programmes tailored to manufacturing needs should support the skills shortage that businesses often say is one of their main restrictions to growing their business.

“While the Industrial Strategy is certainly a welcome boost for manufacturing and regional growth, the government could extend its support by getting behind the Northern Arc plans which will further enhance the region’s ability to be world leaders in areas such as energy and advanced materials. We’ve already seen the success of such plans in other areas with the Oxford-Cambridge Arc leading to improved infrastructure, regional collaboration and investment. With an anticipated £90bn contribution to the wider UK economy by 2040, the Northern Arc could unlock more innovation, drive sustainable growth, and create more than 40,000 high-quality jobs by 2050.”