Advanced manufacturers to get £125m windfall

ADVANCED manufacturing businesses are set for a £125m windfall following the government’s announcement of a new fund designed to support key supply chains.

The Advanced Manufacturing Supply Chain Initiative, part of the Regional Growth Fund, aims to help existing UK supply chains grow and improve quality standards. It also aims to attract new suppliers to the UK.

The initiative is based on an existing bid to the RGF led by a group of local enterprise partnerships (Greater Birmingham and Solihull, Coventry and Warwickshire, Black Country and Liverpool City Region), together with Birmingham City Council.

The scheme is focussed on the automotive and aerospace sectors and on a specific regional area. The plan is to expand the scheme’s coverage across the UK and to other advanced manufacturing sectors such as the chemicals industry.

It will also target newer growth areas where the UK is well placed to take a global lead, such as energy renewables and other low carbon sectors.

Speaking at the annual CBI Manufacturing dinner last night, Business Secretary Vince Cable said the scheme was designed to make the UK a leading manufacturing power; one capable of winning business across the globe by supplying high quality products to in-demand sectors.

He said: “I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations.

“British suppliers have a lot to offer and we need to help them realise and develop their strengths and sell them on the international market.”

The competitive fund will be open for applications early in the New Year and is designed to be flexible in the type of support offered to successful proposals.

It recognises that to fulfil their potential and address market failures, suppliers and supply chains may require a combination of investment in capital equipment, associated research and development and improved skills and training support.