Business Secretary Peter Kyle used the Make UK National Manufacturing Conference on 3 March 2026 to restate government delivery of the Industrial Strategy through a manufacturing-focused partnership with industry. He positioned “next‑generation manufacturing” as central to economic and national security and set out three organising pillars for action: conception, production and utilisation. (gov.uk)
The Secretary of State opened with operational guidance for companies with staff in the Middle East, asking employers to ensure personnel register their presence and follow Foreign, Commonwealth & Development Office (FCDO) advice. The FCDO has activated registration portals for British nationals in Bahrain, Israel, Kuwait, Palestine, Qatar and the UAE, and advises against all travel to Iran amid airspace closures. (gov.uk)
On conception, the government’s message is that more value is captured at the design stage as AI, digital twins and advanced simulation move decisions upstream. Kyle cited current UK practice in complex engineering and defence to illustrate the point, and framed design-led innovation as the entry point to “factories of the future” rather than an end in itself. (gov.uk)
On production, ministers are backing wider adoption of industrial digital technologies through the Made Smarter adoption programme. Government policy papers commit funding to extend access across England and to reintroduce digital internships to accelerate diffusion into SMEs, with officials signalling further expansion work with the devolved administrations from 2026–27. (gov.uk)
Skills policy is being redesigned to match that production push. Budget 2025 confirmed the new Growth and Skills Levy will fund short courses in areas such as digital, AI and engineering from April 2026, alongside targeted sector packages in engineering, defence and digital. Departments have also announced parallel AI workforce initiatives intended to raise basic adoption capability across the economy. (gov.uk)
Cost competitiveness remains a constraint, particularly electricity prices for energy‑intensive manufacturers. The government is consulting on raising compensation for network charges from 60% to 90% as part of the British Industry Supercharger, while preparing the British Industrial Competitiveness Scheme to bring UK industrial power costs closer to European comparators from 2027. Officials indicate the scheme could cut bills by up to £40/MWh and benefit more than 7,000 firms in scope. (gov.uk)
Automotive is a flagship for the strategy. DRIVE35 provides £2.5 billion over the next decade to crowd in private investment across zero‑emission vehicles, batteries and the wider supply chain, with new and improved funding competitions and a ten‑year policy signal for investors. The Treasury has since confirmed an extension of DRIVE35 to 2035 within the Industrial Strategy framework. (gov.uk)
Supply security is the other anchor. The UK Critical Minerals Strategy – Vision 2035 – sets outcomes to meet at least 10% of aggregate domestic demand through UK production and 20% via recycling by 2035, including a goal of 50,000 tonnes of lithium (or LCE) from domestic sources. DBT has also earmarked up to £50 million for project support and moved to broaden UKEF’s eligibility for critical‑minerals supply finance. (gov.uk)
On utilisation, the Secretary of State argued that manufacturing competitiveness increasingly depends on service‑wrapped exports, from software and analytics to predictive maintenance, citing the well‑established “power by the hour” model as an example of how margins are shifting to performance‑based offerings. Aligning export finance and trade policy to these strengths is now an explicit policy objective. (gov.uk)
Export finance is being positioned to support that shift. UKEF reports £14.5 billion of support provided in 2024/25, with backing for 496 SMEs and its General Export Facility accounting for most facilities. Alongside product‑agnostic support, UKEF has updated its Critical Minerals Supply Finance to reflect the government’s new growth minerals list and evolving offtake needs. (gov.uk)
For manufacturers, the near‑term read‑across is practical. Firms with exposure to the Gulf should action workforce registration and contingency plans in line with FCDO notices. Operations teams should map eligibility for energy cost reliefs under the Supercharger and track BICS consultation outputs, while production leaders consider Made Smarter diagnostics and leadership training. Finance and export leads should engage UKEF’s regional managers early, and HR teams can prepare to draw on Growth and Skills Levy short courses from April 2026. (gov.uk)
Policy watch points now include the conclusion of the BICS eligibility consultation, the rollout timetable for short courses under the Growth and Skills Levy from April 2026, and further DRIVE35 funding competitions. These will determine how quickly the Industrial Strategy’s design‑production‑utilisation model translates into measurable productivity and resilience gains on the factory floor. (gov.uk)