The UK’s new industrial strategy is more than just government talk. It comes at a time when British manufacturing faces intense global competition, persistent productivity gaps and increasing cost pressures. It is a finely tuned roadmap aimed at turning British manufacturing into a global leader in advanced production, sustainability and resilient supply chains. With billions committed to funding, energy relief and skills development, the opportunity is enormous. The Business Matters Magazine recently highlighted how the strategy couples cheaper energy for factories with fresh funding for R&D, automation and skills, creating the kind of foundation manufacturers need to compete globally.
But these incentives will not matter if internal inefficiencies continue to erode margins. To truly benefit, manufacturers need operational processes that are lean, transparent and scalable. Policies can create the environment for growth, but only operational readiness will allow businesses to seize the opportunity.
Billions for Advanced Manufacturing If You Can Deliver
The plan commits billions to robotics, automation and technology adoption. This is a rare opportunity for manufacturers to scale quickly and confidently. However, securing this funding means demonstrating strong procurement control, supplier visibility and cost management.
Businesses that have already invested in modern procurement systems will find themselves at an advantage when applying for grants or government-backed finance. Key factors that can give decision-makers the confidence to award funding include:
- Comprehensive reporting tools that provide clear financial visibility.
- Streamlined supplier approval processes that ensure compliance.
- Accurate budget forecasting to demonstrate fiscal responsibility.
For manufacturers still running manual or fragmented systems, now is the time to consider upgrades that can deliver this level of control.
The ability to show end-to-end purchase visibility and efficient spend management, often enabled through P2P automation, is no longer just a back-office improvement. It is fast becoming a competitive requirement for winning contracts and investment in a funding-rich environment. Organisations that have adopted such systems often report up to 65 percent faster approval cycles and significant improvements in spend compliance.
Energy Cost Relief That Fuels Investment
From 2027, energy-intensive manufacturers could see electricity costs reduced by up to 25 percent. This is a significant shift for industries where energy consumption is one of the largest operating expenses. The savings potential could be millions for larger plants and substantial even for mid-sized operations.
The real question is how to best use those savings. Redirecting the freed-up capital into process improvement is one of the most impactful strategies. For example, implementing AP automation can drastically cut invoice processing times, eliminate duplicate payments and improve accuracy in supplier payments. Industry benchmarks show that automation can reduce processing costs by up to 80 percent while improving on-time payment performance. The combination of reduced energy costs and increased operational efficiency can deliver a powerful double effect on profitability.
By freeing finance teams from manual data entry and approval chasing, manufacturers can redirect skilled staff toward higher-value analysis and supplier negotiations. This is especially important when energy markets remain unpredictable, as agility in cost control will be critical to staying competitive over the long term.
Clusters and Supply Chains Built on Data
The industrial strategy aims to strengthen regional manufacturing clusters where research, production and skills come together. While these hubs drive innovation, they also create more interconnected supply chains, and with that comes complexity. Managing supplier relationships across multiple locations requires not just visibility but consistency in data and process.
In practical terms, this means standardising purchase order processes, having centralised access to supplier performance data and ensuring all locations work from the same set of financial controls. For multi-entity businesses, this can be a major challenge without integrated systems in place.
When supplier data is centralised and transactions are processed in real time, decision-makers can identify bottlenecks earlier, prevent cost overruns and negotiate from a position of strength. Clients that have implemented such approaches often report better supplier performance metrics and up to 20 percent faster resolution of delivery or quality issues. This is especially relevant in industries with long production cycles, where a small delay in one supplier can have a ripple effect across the entire cluster.
Amplifying Skills Through Automation
Skills development is a priority in the strategy, but upskilling does not always mean hiring more people. It can mean giving existing teams better tools that eliminate repetitive tasks and allow them to focus on higher-value work such as supplier relationship management, compliance and reporting.
For example, advanced matching technology can automatically reconcile invoices against purchase orders and delivery receipts, flagging only exceptions for human review. This reduces approval bottlenecks and accelerates month-end close. It also creates a more engaging role for finance staff, who can shift from transactional processing to problem-solving and analysis.
Upskilling in this way also helps with staff retention. Teams that have access to modern tools and are able to contribute to strategic decision-making are more likely to feel valued and stay with the organisation. Given the skills shortages in manufacturing, this is an important competitive advantage.
Case in point: Logitech, one of the world’s largest computer peripherals manufacturers, implemented automation to manage invoices across Europe, North America and Asia. The result was 83 percent touchless processing and complete visibility over more than 100,000 invoices annually, proving that automation at scale delivers measurable results.
Turning Policy into Profit
The industrial strategy sets the stage for a manufacturing resurgence. The winners will be those who combine vision with operational precision, transparency and adaptability. Grants and tax incentives can create openings, but sustained success will depend on how efficiently a business can run its core processes.
Companies that prepare now by tightening procurement controls, improving supply chain visibility and adopting targeted automation will be best placed to capture the benefits of this new era. Aligning operational processes with strategic opportunities will not only help in meeting government objectives but will also strengthen resilience against market volatility.
Book a 20-minute executive strategy session to explore how automation can help meet the UK industrial strategy goals, from securing funding to streamlining supply chain operations and boosting productivity across every site.
Frequently Asked Questions
The strategy is a government-led plan to boost British manufacturing competitiveness through investment in advanced production, sustainability, supply chain resilience, skills training, and energy cost reduction. It includes billions in funding, incentives for automation, and targeted support for regional manufacturing clusters.
To access funding and incentives, manufacturers need to demonstrate strong procurement controls, operational efficiency, and transparent supply chain management. Companies with integrated systems such as P2P automation and AP automation will be better positioned to win grants, reduce costs, and scale operations effectively.
Energy-intensive industries such as automotive, aerospace, chemicals, and heavy manufacturing stand to gain the most, especially from the planned energy cost reductions of up to 25% starting in 2027. Advanced manufacturing sectors in robotics, EV batteries, and green technologies will also benefit from targeted funding.
Automation streamlines core processes such as supplier management, invoice processing, and procurement compliance. This improves efficiency, reduces costs, and increases transparency, all of which align with the strategy’s objectives to make UK manufacturing more competitive globally.
Early preparation is key. Businesses should begin tightening procurement processes, centralising supplier data, and implementing automation solutions now. This ensures they can demonstrate operational readiness and capture funding opportunities as they are rolled out over the next few years.
