CIIP contributes to Parliamentary discussion on UK reindustrialisation

Last week, CIIP’s Jennifer Castaneda joined the Reindustrialisation Research Group (ReRG) at the Palace of Westminster for an evidence session exploring the opportunities and challenges facing the UK’s reindustrialisation agenda.

Convened by Andy MacNae MP, the ReRG brings together more than 50 parliamentarians and is gathering evidence from businesses, trade unions, academics and experts to inform its work on reindustrialisation.

Drawing on CIIP’s work, Jennifer contributed to discussions on the economic and regional consequences of deindustrialisation, the role of industrial policy in supporting UK manufacturing, and the priorities that should underpin an effective approach to reindustrialisation.

A key theme of the discussion was the relationship between manufacturing and productivity. CIIP studies have highlighted the important role manufacturing can play in driving aggregate productivity growth, with international evidence demonstrating the contribution of a strong manufacturing base to productivity and economic competitiveness. The discussion also considered the consequences of the decline in UK manufacturing for productivity performance over recent decades.

The session also explored the regional dimension of reindustrialisation. Manufacturing has a particularly important role to play in this context because it combines relatively high levels of productivity with a strong presence outside London. Strengthening manufacturing therefore has the potential to contribute to narrowing regional productivity gaps and supporting more balanced economic growth across the UK.

Jennifer also highlighted the importance of thinking about reindustrialisation through the lens of industrial capabilities and value chains, rather than focusing on individual sectors in isolation. Manufacturers depend on a wider ecosystem of suppliers, technology providers and knowledge-intensive services, including engineering, design, R&D and digital capabilities. Understanding and strengthening these relationships will be important to improving the UK’s ability to translate innovation into commercial and industrial outcomes.

Finally, the discussion considered the importance of building an inclusive manufacturing workforce. Nearly a quarter of the UK manufacturing workforce – more than 600,000 people – is expected to reach retirement age within the next decade. Attracting more women, younger people and other underrepresented groups into manufacturing will therefore be important both for increasing participation and addressing future workforce needs.

The evidence session formed part of the ReRG’s programme of engagement with industry, trade unions, academics and other policy actors as it considers the opportunities and challenges associated with the Government’s reindustrialisation agenda.

Explore CIIP research

The themes discussed during the session build on a growing body of CIIP publications into UK manufacturing, productivity, industrial innovation and the future manufacturing workforce:

• Understanding sectoral sources of aggregate productivity growth: a cross-country analysis
• Levelling-up or evening out? How sector dynamics explain regional productivity gaps
• The changing value and structure of the UK manufacturing sector
• What makes the UK industrial innovation system different?
• How to make manufacturing charming again? It is everything, everywhere, all at once
• The UK Manufacturing Dashboard