UK trade association BEAMA has launched its first Market Pulse quarterly report with the goal of kickstarting its #AcceleratingElectrification campaign, aimed at boosting investment in the UK’s electrical manufacturing supply chain.
Analysis by the group, an association for manufacturers and providers of energy infrastructure and systems, found that while the supply chain was poised to meet increased demand for low-carbon heating and electric vehicles (EVs), investment intensions were still “significantly” lower than they had been 12 months ago – falling short of the UK’s electrification needs.
BEAMA attributed the recent slower uptake of net-zero technologies to repeated policy delays and U-turns, which it said had had a detrimental impact on the UK’s attractiveness as a destination for investment.
However, the group also cited “significant” manufacturing investments by its members earlier in 2024 as cause for optimism.
Despite this, BEAMA warned that more certainty was needed to help stimulate the levels of investment needed to meet government targets, such as clean power by 2030. It said that, given the timeframes of five to seven years needed to plan and develop manufacturing capacity, clear policy and regulatory signals were needed, which it believes would translate into manufacturing orders.
“The choice is clear, risk becoming reliant on supply chains outside of the UK or capitalise on the huge potential to grow this economic opportunity and build on the current £5b of exports we currently maintain,” said BEAMA CEO Yselkla Farmer.
The report warned about a lack of “clear frameworks and detailed roadmaps” required to increase the pace of investment. It found that “far greater certainty” of demand was needed – either from government-led investment at infrastructure level or from builders and consumers for end-use products – in order to expand investment intentions.
The report calls on the UK government to invest in electricity networks, actively monitor deliverability and assess supply chains for electrification technologies as key steps to help meet targets.
Market Pulse data shows that business optimism has rebounded above the five-year average in 2024, according to BEAMA. The report also found that manufacturing unit costs were at a four-year low, which the group said illustrated that now was “a prime moment” to invest in UK manufacturing.
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