BEAMA launches Industrial Strategy White Paper

27 Nov 2024

BEAMA has today launched an Industrial White paper, demonstrating how support for the electricity products manufacturing sector can achieve decarbonisation and industrial growth. You can access the paper by clicking here.

BEAMA CEO Yselkla Farmer has said:

"I am delighted to share this Industrial Strategy White Paper with Government and industry stakeholders. The publication of the Government’s own Green Paper and consultation within a few months of taking office is certainly seen by our 200 member companies as a positive sign of intent to better support industry and the electricity products manufacturing sector specifically. We have had an excellent response from our members during a short consultation period, so this paper is built on a wealth of evidence from the electrical manufacturing industry. As such, the insights contained within are both expert and highly valuable. This evidence builds on the launch earlier this autumn of our quarterly Market Pulse statistics series which we hope will stimulate discussion and action for years to come.

"What is clear from our members is that an Industrial Strategy cannot just be a handful of piecemeal actions aimed at one or two sectors. Indeed, our first major conclusion is that what are usually considered as Industrial Strategy measures are highly unlikely to succeed if we do not first improve and clarify product demand across the energy sector, with strong interrelations between the networks and end use markets. This is a prerequisite for investment for our members, and we certainly hope our response is heard across the range of Departments able to improve market conditions, noting the strong international competition for investment.

"We also make a range of specific recommendations for improving industrial conditions, from skills and innovation to trade and digitalisation. Our members are eager for the UK to be successful industrially, and also for the country to play a leading role in the transition to Net Zero. This transition simply cannot be achieved without our members, so we look forward to working with Government to securing the economic, social and environmental benefits that decarbonisation can bring to the UK. We are confident that together we can devise and implement an Industrial Strategy to bring the transformational levels of investment that our sector needs."

Contents and executive summary

Why is BEAMA important for an industrial strategy?

BEAMA represents manufacturers in the electrical products sector. This forms part of the clean energy industry, which Government has identified as growth-driving. Our members are also necessary for Clean Power by 2030 and the wider transition to Net Zero, both key Government policy aims. Success will be put at much greater risk without industrial activity in the UK. Therefore, Government should seek to help our sector perform strongly to meet its economic and energy policy goals.

Why is an industrial strategy important for us?

Based on the estimates of investment and growth required for the Net Zero transition – in which our members need to play a critical role – we should expect to be seeing transformational levels of planned investment, but this is not the case. We have some existing strengths to build on in our industry. Government can help significantly improve our members’ prospects with a combination of clear long-term policy and targeted support interventions.

Requirements for our Industry – Demand

The overwhelming message from the BEAMA membership is that visible product demand is a prerequisite for businesses to consider industrial growth. Policy consistency, reducing the price of electricity and consumer pathways are cross-sector interventions that will improve demand. We also recommend numerous specific interventions that can improve and clarify demand across electricity networks, heating, hot water and ventilation, smart energy products, electric transport and building electrical systems.

Requirements for our Industry – Industrial conditions

If demand is sufficient, Government actions to improve industrial conditions can create a suitable environment for investment. Recommended action areas include policy consistency, innovation support, positive trade policy, clarity on industrial decarbonisation, securing the benefits of digitalisation in manufacturing, fair competition and direct financial support. BEAMA and its members are ready to constructively and fully engage with Government and industry partners to pursue shared goals of decarbonisation and industrial growth.

Annex 1 – deep dive into electricity networks

Annex 2 – deep dive into electric heating