National Manufacturing Day: Exploring the critical role of Manufacturing in driving Local Economic Growth - Steve Wilkinson

As we celebrate National Manufacturing Day, it is important to reflect on this sector's pivotal role in our economy. Having spent my career in manufacturing, directly running and growing businesses, and more recently supporting other companies, I have witnessed firsthand the immense value manufacturing brings to local economies. At RTC North, we take this opportunity to highlight these national and local contributions. Manufacturing is more than just an engine of productivity; it is a crucial driver of inclusive and sustainable growth that creates jobs, fosters innovation, and supports international trade. 

One of the major advantages of the manufacturing sector is its ability to attract wealth into local communities. By participating in international trade and driving innovation, manufacturing generates and captures revenue that flows directly into the local economy through employees and local suppliers. This creates a multiplier effect where money spent on manufacturing supports other local industries, including retail, hospitality, and professional services.

For example, the Government estimates that every £1 invested in the future of manufacturing leverages £5 of private sector investment, presenting the rate of return needed for the Government to achieve its mission to deliver economic stability and making it a cornerstone for sustainable economic growth.

Manufacturing doesn’t operate in isolation; it’s intertwined with other sectors, including the digital economy, which supplies advanced technologies and solutions to support manufacturing processes. By fostering strong manufacturing hubs, local areas can create thriving, interconnected economies where digital, service, and industrial sectors grow together.

Another compelling reason to focus on manufacturing is its impact on wages and social mobility. The average wage in the manufacturing sector is more than 20% higher than the national average. This not only provides employees with a higher quality of life but also contributes to social mobility by offering good-paying jobs, especially in regions that may have traditionally depended on lower-wage service industries.

The manufacturing sector also acts as a magnet for both foreign and domestic investment. Investors are drawn to areas with strong manufacturing bases due to the potential for high returns, a skilled workforce, and a solid infrastructure. Whether it’s through Foreign Direct Investment (FDI) or domestic private investment, manufacturing hubs tend to attract capital, which is then reinvested in the local economy.

Areas that successfully cultivate a robust manufacturing ecosystem often see further investments in education, infrastructure, and research and development (R&D), reinforcing the region’s economic resilience. For example, in 2022, manufacturing accounted for nearly half (49%) of the UK’s exports, further highlighting its significance on the global stage and its potential for drawing international attention.

Manufacturing is at the heart of innovation. From adopting advanced technologies like automation, AI, and sustainable production methods to collaborating with universities and research institutes on cutting-edge R&D, manufacturers are often at the forefront of technological progress. In fact, around two-thirds of UK R&D investment comes from the manufacturing sector. This innovative capacity positions manufacturing not just as a producer of goods, but as a leader in driving productivity and the broader effort to future-proof economies against changing global demands and challenges.

As the national government sets an ambitious mission for economic growth, including an essential Industrial Strategy, the manufacturing sector offers a clear path to achieving those objectives. It provides stable, high-wage employment, fosters social mobility, and drives investment. Moreover, with the transition to green energy and sustainable manufacturing becoming central to global agendas, the sector is crucial in meeting net zero targets while simultaneously ensuring economic growth.

By prioritising manufacturing, government policies can simultaneously stimulate local economies, reduce regional inequalities, and position the UK as a global leader in industrial innovation. For local areas seeking inclusive growth, focusing on expanding and nurturing manufacturing is a surefire strategy to create a more prosperous and resilient community.

As the UK strives toward a stronger, more resilient economy, manufacturing must be front and centre in national and local growth strategies. Whether it’s through creating high-quality jobs or attracting investment, the contributions of manufacturing to local economies are vast and must be recognised and supported if we are to achieve the mission of economic stability.

The importance of manufacturing to local economies cannot be overstated. On National Manufacturing Day, we encourage policymakers, businesses, and communities to recognise and celebrate the essential role manufacturing plays in shaping a prosperous future for all. Now is the time for action, investing in manufacturing today will create the foundation for a prosperous tomorrow.

Lancashire is one of the true national heartlands of the UK Manufacturing industry, so it’s only right that we have one of the most unique celebrations of manufacturing in our County!

That is why today Alan Reid MBE and I are in Lancashire, one of the true national heartlands of the UK Manufacturing industry, so it’s only right that we have one of the most unique celebrations of manufacturing in our County! The Support providers have collaborated and organised ‘A Grand Factory Tour’ around three of Lancashire’s finest industrial examples. We have over 35 different Lancashire manufacturers, punctuated by STEM and also economic development representatives on a coach and are visiting the sites of Whatmore, Safran and Fort Vale.  The range of different industries present is huge from carpet to pneumatics, polymerics to wallpaper, CNC machining to air source heat pumps, bakery to automotive, and aerospace to HVAC.

At RTC North, we are committed to supporting the competitiveness of the manufacturing sector. Our team of 100 specialists provides a range of services, from innovation support to market access and supply chain development, ensuring manufacturers can thrive in today’s global marketplace.