Almost two-thirds of UK metals companies, including many in the West Midlands, say current government trade policies are undermining competitiveness, according to the third annual State of the Metals Industry report by the UK Metals Council.
The UK is home to over 24,000 steel and metal manufacturing companies, employing one million people across medtech, advanced engineering, retail, defence and infrastructure projects.
The survey of 150 companies starkly highlights a sector struggling with global uncertainty, political instability, rising regulatory burdens and uncompetitive energy costs.
A sector demanding greater support
More than half of respondents called for greater financial incentives and support to navigate market and regulatory changes while a similar proportion demanded enhanced backing for skills and training.
And a third of firms stressed the importance of revising relationships with both the EU and the US to maintain frictionless trade.
“The resounding message from this year’s survey is that our sector continues to feel the impact of global uncertainty and UK political instability,” said Rachel Eade MBE, Chair of the UK Metals Council.
“The feedback mirrors what I see firsthand on factory floors: our sector needs specialist government support and faster progress on the Industrial Strategy.”
Seven asks including calls for a Manufacturing Minister
To address these challenges, the UK Metals Council has published seven key asks of government:
Close the metals skills gap
- Deliver energy cost competitiveness
- Secure frictionless trade
- Ensure proportionate, predictable regulation
- Support decarbonisation, efficiency, and innovation
- Champion critical raw materials and secondary metals
- Appoint a Minister for Manufacturing
The report also shows a resilient sector: 50% of firms are pursuing new international markets; fifth are exploring opportunities from new UK trade agreements, and a quarter are diversifying in response to post-Brexit changes.
‘Unique resilience and determination to innovate’
Rachel added: “Even in a difficult demand and cost environment, manufacturers continue to invest in technology, boost productivity, reduce costs, expand overseas trade and move towards net zero.
“The sector is facing challenges. But there is a unique resilience and determination to innovate, diversify and thrive – provided government acts on these seven critical asks.”
Now in its third year, the State of the Metals Industry report provides the most comprehensive insights into UK metals, drawing feedback from SMEs, OEMs, and prime contractors across the supply chain.
