UK’s Industrial Strategy targets digital overhaul of UK manufacturing supply chains

Supply chains are the real pressure point of British manufacturing and, with UK car-making at its lowest level for over 70 years, this Industrial Strategy hasn’t come a moment too soon. From the new Supply Chain Centre to targeted regional investment, this plan is a promising attempt to reduce the friction manufacturers face when trying to get products to market at competitive cost.

Despite billions of pounds of investment to retool UK factories for EV manufacturing, the industry is facing severe disruption from global trade challenges, critical material bottlenecks, and the highest electricity prices in the developed world. This has slowed growth across manufacturing from EVs to precision components. The commitment to lower electricity costs and the £4.3 billion Advanced Manufacturing Plan, including £2.8 billion for R&D, will directly affect competitiveness. Rebuilding our supply chain resilience helps us narrow the margin gap with European manufacturers, particularly in energy-intensive sectors like battery cells and aluminium components.

Initiatives like AI Growth Zones and advanced manufacturing clusters will help make next generation supply chains a reality. They give us the tools to address chronic weak points in UK supply chains. UK firms often have digital islands inside plants that don’t link to procurement, logistics, or suppliers. From delayed components to unreliable forecasting, manufacturers have operated with limited visibility for too long. By embedding digital infrastructure where it’s most needed, these initiatives lay the groundwork for a faster, more adaptive, and data-led supply chain system.