Industrial Strategy

Industrial Strategy:
government and industry in
Metals Sector
5 September 2014
#ind strategy
UK Industrial Policy Timeline
September 2007 – Northern Rock run on the bank
Q2 2008 - UK recession underway
15 Sept 2008 – collapse of Lehman Bros
June 2009 – BIS created as a new department (replacing BERR)
May 2010 – first UK coalition government in modern era
March 2011 – The Plan for Growth
September 2012 – key Vince Cable industrial strategy speech
By July 2013 – 11 sector strategies published
April 2014 – industrial strategy “one year on”
Q3 2014 – GDP back to Q1 2008 level
Industrial Strategy
Industrial Strategy: government and
industry in partnership
Industrial Strategy: giving businesses the confidence to invest
Key principles:
• Long term
• Partnership with business
• Whole of Government approach
Industrial Strategy
Five themes of Industrial Strategy:
• emerging technologies including the “8 Great”
• access to finance
• helping businesses to develop the skills that they need
• simpler and more transparent public sector procurement
• A spectrum of support for all sectors
Industrial Strategy
• Investing in emerging technologies where the UK has research
expertise and business capability to develop and exploit these.
• £600 million being used to support the eight great technologies
Big data
Synthetic Advanced
technology biology
materials and
e Medicine
• Catapult centres (similar to Fraunhofer centres) The first seven
Catapult centres now open for business with total public and
private investment exceeding £1.4 billion over their first 5 years.
Industrial Strategy
Working with business to develop the skills that business need:
• £100m employer ownership fund - created to co-finance
investment in skills in key sectors and new technologies
• Apprenticeship expansion and reform
• “Elite colleges” linked to areas of strategic investment
• Extra funding for teaching high cost science and engineering
subjects in universities reflecting industrial strategy priorities
• Initiatives to engage young people, particularly young women,
with engineering such as ‘See Inside Manufacturing’ and ‘Make
it In Great Britain’
Industrial Strategy
Access to Finance
A key issue for businesses
• British Business Bank launched as an interim organisation in
October 2013 to make finance markets work better for smaller
businesses in the UK
• supported £660 million of lending and investment to smaller
businesses during 2013, a 73% increase over 2012
• over the next 5 years together with the private sector to unlock
up to £10 billion additional finance and to increase competition
• Business Finance Partnership - £1.2bn stimulating non-bank
finance sources
• Green Investment Bank created in 2012 as the world’s first
investment bank dedicated to greening the economy with £3.8
bn funding available - Green Investment Bank.
Industrial Strategy
Getting the most out of procurement, supporting supply chains
• updated procurement pipelines published covering 19 sectors
and contract opportunities are worth £175bn.
• simpler public-procurement: abolishing Pre-Qualification
Questionnaires (PQQs) for low-value contracts; helping suppliers
to find contract opportunities via a single online portal;
mandating prompt payment down the supply chain.
• opening up more Government contracts to SMEs with ambition
that 25% of Government’s spend goes to SMEs by 2015.
• working with business to assess the strategic capabilities
required in the supply chain
Industrial Strategy
Life Science
Strategy (Dec 2011)
and one year on
update (Dec 2012)
Aim: To make the UK
the global hub for life
Aerospace (March 2013)
Aim: Maintain existing UK
market share; secure UK
Professional Business
(July 2013) Aim: make the
UK the global hub of
(July 2013) Aim:
Increase the UK's
education exports
Nuclear (March 2013)
Aim: Grow the global
market share; set out role
that nuclear plays in UK
energy mix
(July 21013) Aim: make
the UK the global leader
in sustainable
Oil and Gas (March 2013)
Aim: Increase inward
investment in energy
supply chain
(July 2013) Aim:
increase inward
investment and
(July 2013) Aim:
Investment in R&D;
grow and develop UK
supply chain
Offshore wind
(August 2013) Aim:
Build competitive and
innovative UK supply
Economy (June
2013) Aim: to seize
the opportunities
from new ICT
Industrial Strategy
Other sector strategies, including in technology
• Strategies led and published by the sectors themselves:
Robotics and Autonomous Systems strategy launched on 1 July
Updated Composites strategy due for October publication
Rail Supply Group set up
Metals Strategy work now starting
Potential similar work on plastics and engineering
Industrial Strategy
BIS expectations
• Metals strategy needs to look to the future – where does the sector need to
be in 5, 10, 15 years and what does it need to do to position itself accordingly
• Be ambitious and raise the bar, also think about delivery and maintaining
• Should not just be a list of asks of government but what you can and will do
for yourselves – could include collaborative R&D (products and processes),
strengthening supply chains, commitments to take on more apprentices,
further/better working with other sector groups eg auto, aero, construction.
• Identify the critical gaps where further support may be needed and what role
the Government might play
• Utilise existing support mechanisms where appropriate:
– HVM Catapult, RGF, AMSCI, EOF and Apprenticeship funding, Innovate UK (TSB)
collaborative R&D, MAS, Reshore UK , UKTI Exports (TAP) - recognising that many
of these are competitions
• Opportunity to engage increasing number of companies from within the sub
sectors – need to address needs of SMES as well as the larger companies
Industrial Strategy
Our contact details
Brian Greenwood
Deputy Head, Materials & Engineering
020 7215 1298
Dominic James
Assistant Director, Materials
0207 2158432