After sixteen months of planning, analysing and discussing, Theresa May’s government have released the much-advertised Industrial Strategy for the United Kingdom. As professionals, organisations and the public themselves digest the strategy and its contents, the key points at its heart are coming to the fore – but what do they mean for the UK’s growth?

 

The Industrial Strategy has been a key working point for Theresa May since she first gained power in July 2016. The strategy, a work in progress ever since that fateful first day, aims to shed a light on how the UK can succeed in putting innovative ideas into practice, boost the economy, and ensure that everybody takes their place in a stronger post-Europe United Kingdom.

Broadly speaking, the strategy has been met with a warm welcome from business leaders. As many have pointed out since its publication, the strategy is a step in the right direction for the government, who have been urged to address our growing problem with productivity for some time now.

There are more than a few, however, who reason that this is just the beginning. Much like the construction industry’s Farmer Review last year, there now needs to be follow through for real success – and the government needs to action the points it’s offered up.

 

What Did We Learn from the Strategy?

The Industrial Strategy has now been devoured, embraced, and is already informing decisions; but what exactly were the key takeaways from the 255-page document?

Having read the strategy myself, I’ve selected five of the key facts that piqued my interest. To read the Industrial Strategy in its entirety for yourself, click here.

 

We Need to Build on Relevant Skills

A huge pain point for productivity in the UK has been the growing skills gap – and it’s a problem which spans more than just one industry or set of skills. The digital sector is desperate for more skilled individuals, whilst the construction industry is still reeling from the recession, with thousands more workers needed in the next few years.

Taking this information to heart, the Industrial Strategy has highlighted the need for a focus on relevant skills. There’s particular attention paid here to maths and technical abilities, with STEM subjects quickly becoming invaluable learning assets in modern and future industries.

Meanwhile, the government has also acknowledged that there needs to be a new way of learning alongside the new skills – it’s clear that what’s happening now isn’t working at a quick enough pace. Citing the innovative techniques being undertaken at Dyson headquarters and the New Model Technology and Engineering (NMiTE) in Herefordshire, the strategy makes a case for encouraging innovation and focusing on student outcomes, all overseen by the new Office of Students.

 

AI Has its Place

Artificial Intelligence is rapidly gaining popularity around the world, with new applications in different industries being developed all the time. One particularly exciting figure cited in the strategy was the estimated £232bn that AI could add to the economy by 2020 – a tantalising reason for the UK to keep up with AI developments, and remain a world leader in the field.

The government has acknowledged the importance of AI, enshrining it as one of the strategy’s four ‘Grand Challenges’. As a result, they’ve proposed encouraging the development of innovative new AI applications through the Strategy Challenge Fund and new regulations. Over in education and research, an additional £45m has been pledged to support additional AI PhDs, increasing places by 200 each year. There are also promises of extra skills training, and an ‘Office of AI’.  

Unfortunately, the strategy lacks some detail, such as the funding available to the Office of AI, and according to PwC’s Head of Technology, Jon Andrews, the investment put on the table falls short of what’s necessary to make the UK a ‘world leader’. Despite understanding that AI is essential to the UK’s future success, there’s still a lot to be cleared up if we’re going to overcome this ‘Grand Challenge’.

 

The Importance of a Graceful Brexit

Brexit has filled column inches and headlines seemingly for ever at this point, and it remains a hot button topic. It’s no surprise, then, that Brexit has reared its head again when talking about the strategy.

As many critics and commentators have pointed out, despite being created as a means to guide the UK post-EU, the strategy falls apart without a graceful exit from the party. “There is no point putting your foot to the floor on an industrial strategy, whilst Brexit applies the brakes”, argues Josh Hardie, deputy director-general of the CBI, who marked the strategy as otherwise a “decent first step”.

With current talks of a ‘Hard Brexit’ and negotiations trailing along, Mr Hardie raises an excellent point: we’re currently distracted as a nation by Brexit, and it’s difficult to make plans for a world which is still in the making. So, whilst the Industrial Strategy is something positive to focus on, we must also be aware that Brexit could still throw a spanner in the works.

 

The Government Listened…But This is Only the Beginning

I join other business leaders in expressing my joy – and surprise – at the fact that we’re being listened to. The Industrial Strategy almost serves as a peace offering, providing us with the reassurance that the government has plans to shrink the skills gap and invest in the industries which matter, and that there’s a clear role for us all to play.

But as has been noted several times throughout this article and in many others like it, the Industrial Strategy only works as a starting point. With the likes of Brexit, missing details, and the need for energy to get things moving, there’s still a long way to go.

With a warm reception, however, it’s feasible that business owners and industry leaders would gather around the strategy to put it into place. Meanwhile, the government’s priorities can hopefully inform Brexit negotiations, ensuring that the end result provides the strategy – and the UK’s next golden age – with the best possible start.

 

What did you think of the Industrial Strategy? Does it provide the UK with the foundations of the next industrial revolution? Share your thoughts with us on Twitter, and to find out more about Kaleida and our bespoke software development offering, get in touch on our website.