Now is the time to boldly secure our industrial and manufacturing future, says DS Smith boss Miles Roberts

As I am sure has been the case for many readers in recent days, I have been reading with interest the manifestos of the main parties to see how their promises are likely to take shape over the next five years.

I have done this on a personal level, but also as CEO of DS Smith, a FTSE 100 company with a proud British heritage.

I am particularly interested in the plans for an industrial strategy and how it can generate much-needed economic growth.

The success of major manufacturers such as DS Smith is based on sustainable investment for the long term.

When we decide how much money to spend on new facilities or technologies, we look 20 to 30 years ahead. We must therefore be confident that we can rely on policies that not only create the right investment conditions, but also have sufficient foresight.

And it’s not just us. All British businesses are clamoring for a long-term national industrial strategy that will support higher levels of investment and growth.

Given the unprecedented challenges of the net zero transition, that strategy must be supported by an ambitious decarbonization plan for the industry.

Many of our competitors abroad have been busy implementing their plans for years, meaning the UK is lagging behind.

While it was positive in this Parliament to see developments such as the Energy Bill Relief Scheme in response to the scale of the energy challenge posed by the war in Ukraine, this was a short-term response.

Energy costs for manufacturing in the UK are and will remain significantly higher than those in mainland Europe.

This, plus the lack of a long-term industrial plan and uncertainties over the regulatory environment and differences with Europe, have continued to deter companies from investing in the UK.

As we deal with the macroeconomic effects of Covid-19 and the war in Ukraine, much-needed growth is being hampered.

But why should we focus specifically on production? The UK is often described as a ‘service economy’ and the benefits of fintech are much touted, but the UK manufacturing sector accounts for around half of our exports, two-thirds of R&D spend and employs around 2.6 million highly qualified people across the country.

Everything you touch or consume, at home or at work, has its origins in production. It is therefore crucial that any new approach recognizes the fundamental importance of manufacturing to the UK economy.

It is certainly true that the government has paid a lot of attention to advanced manufacturing over the past decade.

However, the next government must recognize the benefit that production as a whole brings.

Furthermore, I firmly believe that there needs to be a new strategy that focuses unashamedly on a green reindustrialisation of Britain.

The combined challenges of the net-zero transition, historically low growth and increasing global competition mean that governments have a clear need to work with businesses to find solutions that work.

Whoever is in power at the end of next week, the idea of ​​an industrial strategy partnership or council to provide expert advice to the government on a statutory basis is undoubtedly a good one.

As a major employer and cog in the supply chain and manufacturer of fibre-based packaging, our roots are in Britain and we are passionate advocates of sustainability.

But as it stands now, the lack of clarity on energy sources is deeply problematic. We need to know where the government will be placing its bets – what will be Britain’s new energy sources?

For example, will it be nuclear energy, hydrogen or biofuels? And where will this be generated, on what timescale and with which connections and pipelines? That is what we need to make investment decisions.

None of this happens alone. Success will come from a strategy implemented by government and a range of industry players.

If the next government, in whatever guise, can give us clarity about where and with whom these partnerships will take place, then investment from a range of relevant parties will follow, I am sure.

Without a forward-looking green industrial strategy in line with the groundbreaking packages announced by US and EU lawmakers in recent years, along with long-term certainty about the direction of regulation and alignment with our European partners, Britain risks rapidly falling behind, particularly on green technology and energy security.

With guidance, companies can meaningfully assess what investment in the UK could look like.

For our part, DS Smith has already invested record amounts in lower carbon installations in Italy and Poland, and in greener technologies in Germany, France and Spain. This is because we have ambitious carbon reduction targets and the industrial and energy policy frameworks in those countries are clear.

But at the moment, the UK cannot indicate how the country will reduce net-zero emissions, nor why it is an attractive place to invest.

Speed ​​and agility are important. I’m sure I’m not the only one looking forward to finally seeing concrete proposals, and while we don’t have the purchasing power of the US or the EU, we do have many strengths that we can and should leverage .

The sooner the winning side embraces this on Thursday, the better it will be for Britain.