Manufacturers urge Government to supercharge 'sovereign capability'

Launched at the recent MACH 2026 event at the NEC, Brimingham, findings reveal that thousands of firms are keen to support the national mission to reduce the UK’s manufacturing dependence on international partners, especially in the wake of recent global conflicts and economic uncertainty.

The survey found that 74% of the 358 manufacturing companies questioned said they would be willing to do more to build up capacity in key sectors like defence, energy and transport, but only a quarter of these can meet demand straight away.

The others said it would take up to six months to be in a position to help, which reveals a potential bottleneck in the supply chain if action isn’t taken now.

Manufacturing bosses said the biggest barrier was access to funding (34%), followed by lack of space (28%), cost of financing (27%) and economic uncertainty (24%).

They called on the Government to help the ‘sovereign push’ by providing grants (59%), greater tax incentives (50%) and more support for training.

ames Selka, CEO of the MTA, said: “As you can see from the findings, there is a real appetite from industry to meet the challenge, but the message from our community is that it needs to be supercharged by the powers that be at No10 and the Treasury supported by the UK’s financial services community

He continued: “Immediate access to finance appears to be the pivotal issue. Government has already announced important improvements, but there remains an urgent need for Ministers to look hard at how best to support the investment that will accelerate the expansion of critical sectors and build UK capability and capability. Without that our national resilience will remain dependent on international partners.

“We believe that this survey shows that there is a case for a ‘sovereign capability fund’ to support companies involved in defence, aerospace, med tech and energy for instance.

“This is where the British Business Bank could step-up and support more of UK manufacturers to make vital components here. Germany’s Deutschlandfonds, which will lever in 130bn Euros, is a great example of what could be done if government is prepared to work more closely with industry to encourage investment.

As a nation we need to step up and act now or suffer the consequences.”

The MTA’s snap survey also delved into early views of the much-anticipated Industrial Strategy.

Members note the many positive Government announcements linked to the Strategy, but feedback from the shopfloor suggests real progress has been limited, with over half (55%) saying it has had no impact on their business and that they could not ‘see any way in which it would in the future’.

When asked about what the Government says it is delivering, the most meaningful benefit to manufacturers would be ‘lower energy prices’ (57%), with UK firms battling some of the highest costs in the world.

A targeted skills package was the second most popular answer, with greater ‘investment in zero emissions vehicles manufacturing through grants and R&D support’ third.

Selka went on to add: “We are approaching the first anniversary of the Industrial Strategy, and it is clear from our survey that, at best, industry remains unconvinced that it will deliver what’s needed.

“It came as no surprise that help with energy is the area where most support is required. Every day our members are telling us that the impact of rising costs is making the UK uncompetitive against international rivals who enjoy far cheaper prices.

“Importantly, this is a message that must be heard and acted on. Our firms are feeling the pinch now and can’t wait five years for a raft of sustainable energy improvements to kick in.”

To view the full results of the snap survey, please see below:

machexhibition.com/wp-content/uploads/2026/04/MACH-2026-Snap-Survey-1.pdf