Nicola Brittain gets insight from key players on how the strategy will affect process manufacturers
The long-awaited UK’s industrial strategy, a 160 page report launched in June 2025, outlines a ten year plan that aims to boost business investment and economic growth.
Although a few commentators have argued that the report is too broad, there was considerable emphasis on some specifics, namely the importance of robotics and automation to the UK economy. According to a recent MAKE UK survey, 76% of manufacturers have recently invested in automation, with 59% planning to increase that investment over the next year. Similarly, Deloitte recently forecast the UK robotics market to reach £1.7bn in 2025 and to grow at over 16% compound annual growth rate (CAGR), with a forecast to hit £3.1bn by 2029.
Cash injection for robotics
Oliver Selby sales director at Robotics manufacturer Fanuc and chair of the British Automation and Robotics Association (BARA) opened a recent press event to discuss the impact of the strategy on robotics and automation (the First Friday Club held in July). He said that he welcomed elements of the advanced manufacturing sector plan. For example, the pledge to establish ‘robotics adoption hubs’, a new national network that will support SMEs to integrate robotics and autonomous systems; as well as the promised £4bn injection of industrial strategy growth capital via the British Business Bank to support automation aligned innovation.
Selby explained why he thought this was important. “UK productivity rates have to rise if we are to remain a force on the international stage,” he said. “In Q4 2024, productivity was estimated to be 0.8% down year-on-year, and 19% lower than that of the US. However, there is a clear correlation between automation adoption and higher productivity rates, so why aren’t more UK manufacturers investing in robots?” The UK is currently 24th in the world for deployment of robots despite being the 12th largest manufacturer. Selby went on to explain that the idea that robots take people’s jobs is a false one. He said: “It has been proven that robots do not replace people at work. Rather they do the dirty, dull and dangerous jobs meaning that staff can be reskilled and moved into a different role within the business.”
One of the key elements of the industrial strategy is development of the ecosystem around manufacturing, with a key focus on supply chain resilience. This aims to target planning, infrastructure and bottlenecks; coordinate public and private investment across freight corridors, ports and warehousing clusters, and work with devolved governments and industry to align infrastructure with sector needs.
The benefits of partnerships
Selby’s presentation was in large part about the benefit of partnerships, in keeping with the strategy’s focus on the manufacturing ecosystem. He said this was essential in a country made up of SMEs since many are currently in a chicken and egg situation where they can’t grow without orders and can’t take volume orders because they are too small. Of all UK businesses, 99.8% are small or medium sized (SMEs) and there are 5.5 million of these in total [source: Finder.com]. These companies need help to move into robotics and automation since the upfront costs are often prohibitive.
Selby explained that the company offers end-users a variety of pricing agreements through these organisations, as well as considerable support on agreements with a recognition that cashflow will be limited. “We are aware of cash-flow constraints and are committed to helping small companies become automated,” he said.
Selby also discussed the importance of Fanuc’s horizontal partners. These include trade bodies, universities, distributors, and venture capitalists. “It takes an entire ecosystem to bring robots and automated products to market,” he concluded.
One of the trade bodies Fanuc works with is Gambica, a trade association for instrumentation, control, automation and laboratory technology in the UK. Nikesh Mistry, Gambica sector head for industrial automation and test and measurement also gave his take on the new industrial strategy at the event.
“With a £22.6bn commitment to research and development and £600m aimed at strategic sites, the strategy sets a bold course for next-generation manufacturing,” he added, “key initiatives like the Made Smarter expansion, Robotics Adoption Hubs, and a £2bn AI Action Plan highlight the important role of automation and ethical tech innovation.
He concluded: “Industry and policymakers must work together. Our sector has been so resilient in the face of recent geopolitical unrest, and the industrial strategy’s focus on partnerships will help bolster this.”
Some organisations argue that the strategy doesn’t go far enough, however. A release from trade body ICHEME said: “Although the report recognises the transformative potential of AI and digitalisation for improving efficiency and innovation across industry, more targeted action will be needed to equip engineers from sectors like chemicals, manufacturing and process engineering with the tools and expertise required to fully exploit these technologies.”
