Title page
Contents
ACKNOWLEDGEMENTS 4
SUMMARY 5
1. INTRODUCTION 7
2. THE UK NEEDS TO BUILD NEW STRENGTHS IN MANUFACTURING 8
A LESS COMPETITIVE MANUFACTURING SECTOR MEANS A LESS COMPETITIVE ECONOMY 8
MANUFACTURING DECLINE HAS CONTRIBUTED TO UNEQUAL GROWTH ACROSS REGIONS 10
3. THE RACE TO NET ZERO IS A RACE TO RAMP UP GREEN PRODUCTION 13
NET ZERO IS A CHALLENGE LIKE NO OTHER 13
GREEN MANUFACTURING ENABLES THE GLOBAL NET ZERO TRANSITION 13
THE UK NEEDS TO THINK HARDER ABOUT THE RESILIENCE OF ITS GREEN SUPPLY CHAINS 15
BRITAIN'S ECONOMY COULD BENEFIT FROM UNBLOCKING GLOBAL SUPPLY BOTTLENECKS IN GREEN PRODUCTS 15
4. GREEN GROWTH MEANS THINKING DIFFERENTLY ABOUT PRODUCTION 17
CHANGING WHAT WE MAKE 17
PLACES AND PATH DEPENDENCE 18
SHIFTING TO A PATHFINDING ECONOMIC STRATEGY 19
5. GREEN STRENGTHS 21
THE UK ALREADY HAS AREAS OF COMPETITIVE GREEN MANUFACTURING 21
GREEN MANUFACTURING STRENGTHS ARE SPREAD AROUND THE COUNTRY 23
6. GREEN POTENTIAL 26
FINDING GREEN POTENTIAL 26
THE UK IS MORE SUITED TO DEVELOPING SOME GREEN INDUSTRIES THAN OTHERS 28
REGIONS IN THE NORTH AND MIDLANDS ARE WELL PLACED TO GROW INDUSTRIES WITH THE HIGHEST GREEN POTENTIAL 28
GREEN POTENTIAL AROUND GREAT BRITAIN 29
7. RESILIENT FOUNDATIONS 31
MATERIAL INPUTS FOR CONSTRUCTION AND DOWNSTREAM MANUFACTURING 31
CRITICAL MINERALS 31
GREEN TECHNOLOGIES THAT ARE OVERLY CONCENTRATED IN CHINA 32
8. THE UK'S PATH TO GREEN INDUSTRIALISATION 33
THE PATHFINDING FRAMEWORK FOR A GREEN INDUSTRIAL STRATEGY 33
CHOOSING SECTORS 33
PATHFINDING IN AN ERA OF UNCERTAINTY 36
9. CONCLUSION 38
REFERENCES 39
TECHNICAL APPENDIX 42
IDENTIFYING GREEN INDUSTRIES 42
ESTIMATING INDUSTRY RELATEDNESS 43
TABLE 6.1. TOP 15 MANUFACTURING SECTORS IN TERMS OF GREEN POTENTIAL 27
FIGURE 2.1. OVER THE PAST 30 YEARS, THE UK HAS SEEN AN EXCEPTIONAL DECLINE IN THE DIVERSITY OF ITS MANUFACTURING STRENGTHS RELATIVE... 9
FIGURE 2.2. UK MANUFACTURING IS BECOMING LESS ADVANCED RELATIVE TO COMPARABLE COUNTRIES 10
FIGURE 2.3. MANUFACTURING IS MORE PRESENT IN THE NORTH AND THE MIDLANDS COMPARED TO TRADEABLE SERVICES, WHICH ARE HIGHLY... 11
FIGURE 3.1. A WIDE RANGE OF PRODUCTS, TECHNOLOGIES AND SYSTEMS ARE NEEDED FOR A NET ZERO ECONOMY 14
FIGURE 3.2. PROJECTIONS SHOW SIGNIFICANT SHORTAGES IN MANUFACTURING CAPACITY FOR WIND TURBINES AND HEAT PUMPS 16
FIGURE 5.1. THE UK IS THE EIGHTH LARGEST GREEN PRODUCT EXPORTER IN THE WORLD, BUT ITS MARKET SHARE HAS HALVED SINCE THE 1990S 21
FIGURE 5.2. THE UK ALREADY HAS COMPARATIVE ADVANTAGE IN OVER ONE-THIRD OF GREEN PRODUCTS 22
FIGURE 5.3. 32 OUT OF 221 UK MANUFACTURING SUB-SECTORS MAKE PRODUCTS THAT COULD BE USED IN NET ZERO SUPPLY CHAINS 24
FIGURE 5.4. POCKETS OF GREEN MANUFACTURING EXIST ALL OVER GREAT BRITAIN, ESPECIALLY IN COASTAL REGIONS 24
FIGURE 6.1. WIND MANUFACTURING IS MARGINALLY CLOSEST TO EXISTING UK MANUFACTURING SECTORS, FOLLOWED BY GREEN TRANSPORT AND... 28
FIGURE 6.2. THE NORTH AND THE MIDLANDS ARE VERY WELL PLACED TO DEVELOP SECTORS WITH HIGH GREEN POTENTIAL 29
FIGURE 6.3. THE NORTH, MIDLANDS AND THE SOUTH ALL HAVE REGIONS WITH HIGH CONCENTRATIONS OF GREEN-RELATED MANUFACTURING,... 30
Boxes
BOX 4.1. CASE STUDY: BYD - FROM PHONE BATTERIES TO ELECTRIC VEHICLES 18
BOX 6.1. CASE STUDY: FROM SHIPYARDS TO WIND TURBINE FACTORIES 26
BOX 8.1. FRANCE SHOWS THAT IT IS POSSIBLE TO QUICKLY BUILD CAPACITY IN WIND MANUFACTURING 34