Manufacturing supply chain cannot be ignored in delivering Clean Power 2030

11 Dec 2024

  • 17 manufacturing business leaders urge Minister to ensure central role for electricity product manufacturing within Industrial Strategy
  • Industry stands ready to support Government industrial strategy with Net Zero manufacturing taskforce with all major players already around the table calling for Government engagement
  • Industry has prepared its own white paper detailing specific actions required to reach Clean Power 2030

 

London, Wednesday 11th December: BEAMA – the trade association representing manufacturers of electrical products spearheading the drive to electrification and a sector valued at £14bn – has welcomed the Government’s Industrial Strategy programme while urging Ministers to engage with its members to ensure the UK can meet its targets for Net Zero and industrial growth.

Government departments involved with the Industrial Strategy must recognise two main requirements to support the electrical manufacturing sector. Failure to do so puts at risk a major growth sector that employs over 90,000 people in the UK:

  1. Product demand - BEAMA members consistently report that increased investment will not happen in the UK without strong and visible customer demand for products. This can be improved by Government action, such as separating the price of electricity from wholesale gas, market initiatives such as improved finance offerings, and commercial clarity from a clearer work programme for electricity networks growth.
  2. Barriers to UK business growth - If demand improves, manufacturers will also need attractive conditions for doing business in the UK. This will include factors such as availability of staff, reasonable energy costs, competitive incentives and beneficial trade conditions.

BEAMA recently published more detail on these requirements in its new Industrial Strategy white paper, which gives specific targeted actions for Government that can ensure progress to enabling growth in the key sectors. These recommendations and insights are backed by evidence from BEAMA’s 200 company-strong membership.

BEAMA CEO Yselkla Farmer said: “Some product areas forecast the need to multiply production by over ten times by 2035 to meet the demands of the energy transition. We know there is opportunity to invest in UK manufacturing and welcome Invest 2035 as a core platform to provide targeted support for key supply chains, including transmission and distribution equipment and the full range of low carbon electric heating solutions.

“The electricity sector has a unique challenge and opportunity as we need to grow capacity in the supply chain for electrical products at an unprecedented level and within a five-year timescale. This pre-empts the culmination of the Invest 2035 programme and also pushes the limits on the timescales normally worked to if building a new factory or expanding manufacturing capacity. This needs serious thought and partnership with Government, and businesses will need help if they are to act fast and make those crucial decisions to invest in the UK.

“We are at risk of conflating the two objectives: Invest 2035, and the near-term need to grow capacity in a supply chain faster than we have ever done before. We therefore need to design an Invest 2035 programme that enables more near-term immediate action, complemented by longer term planning to drive key areas of investment. We stand ready to work in Partnership with Government Ministers to strike this right balance.”

BEAMA has written to request a meeting with Minister for Industry, Sarah Jones, to explain the contribution our industry makes to economic growth, the huge potential and need for further development, and to discuss the problems holding back our sector that only Government can solve.

BEAMA is encouraged by the speed at which the Government has published its initial thinking on its Industrial Strategy and given the urgency of action to support supply chains that are needed for Clean Power by 2030 and other energy targets, we look forward to further constructive engagement in the very near future.

BEAMA also provides the leadership for the electrification sector’s Supply Chain Council and the Government has been invited to engage with a wide range of supply chain partners to help develop the right platform for investment growth. The Industrial Strategy Council would benefit from liaison with existing forums that can advise on sector-specific issues and delivery options.

ENDS

Notes for editors

  • BEAMA is a UK trade association representing 200 manufacturers and providers of energy infrastructure technologies and systems. BEAMA members’ products for electricity networks and buildings, and members’ manufacturing activity, are essential for the Net Zero transition.
  • BEAMA’s Industrial Strategy white paper and CEO statement has been published here: https://www.beama.org.uk/what-s-new/news/beama-launches-industrial-strategy-white-paper.html
  • The Supply Chain Council taskforce includes as trade association participants: BEAMA, Renewable UK, BCA (British Cables Association), HPA (Heat Pump Association), LIA (Lighting Industry Association), Energy UK, ECA (Electrical Contractors Association), EDA (Electrical Distributors Association), ENA (Energy Networks Association), Scottish Renewables. It is also attended by Energy Systems Catapult, BSI, DESNZ, DBT, Ofgem, NESO and NIC.
  • BEAMA now publishes a quarterly statistics publication called Market Pulse (available here: https://www.beama.org.uk/resourceLibrary/market-pulse-q3--pdf.html). This collates stats from the BEAMA member survey, plus other publicly available stats, to give a view of the health of our industry and progress against Net Zero and economic targets.
  • Please contact BEAMA Head of Policy Simon Harpin at [email protected] with any questions on our Industrial Strategy publications and activity, and BEAMA Head of Marketing Charlie May at [email protected] with any media queries.

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